Thursday, September 29, 2022

Vivo, other companies raided by ED will “chill investment confidence,” says China

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Wang Xiaojian, counsellor and spokesperson for the Chinese Embassy in India, said the Enforcement Directorate (EDfrequent )’s investigations into Chinese businesses “chill the confidence and willingness of market entities from other countries, including those from China, to invest in India” as the ED continued searching Chinese companies’ locations in a money laundering case.

According to Xiaojian, the foundation of economic and commercial cooperation between China and India is founded on mutual benefit and win-win outcomes.

Zhao said in a statement released late on Wednesday that the Chinese government “has consistently requested Chinese enterprises to adhere with local rules and regulations in their foreign activities and would firmly assist Chinese companies to safeguard their legal rights and interests.”

He continued, “The Indian side should behave in accordance with rules and regulations and offer a fair and non-discriminatory business environment for Chinese enterprises.

The directors of several of the companies connected to Vivo left India on Tuesday and Wednesday as the ED conducted raids at 44 locations across 22 states.

Two of the Chinese directors of Solan, a business with roots in Himachal Pradesh and connections to Vivo, are rumoured to have left India, as the ED has filed a case against them for money laundering prevention.

According to ED sources, the enforcement agency has so far learned of money laundering worth Rs 10,000 crore during the operations.

A representative for the Chinese embassy claimed that “frequent investigations by Indian authorities into Chinese firms not only disrupt regular business operations and harm reputations, but also hinder the improvement of the business environment in India.”

The CBI has been looking into the case as well and has also filed a separate FIR.

Vivo previously stated that it is working with the authorities to give them all the information they need.

A firm spokeswoman stated, “As a responsible corporate entity, we are dedicated to be fully compliance with laws.

According to the terms of the Foreign Exchange Management Act (FEMA), the ED seized Rs 5,551.27 crore from Xiaomi Technology India Private Ltd in April in connection with the business’s unauthorised external remittances.

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