This was announced by the Chinese Embassy in India. in a statement on Thursday that investigations by Indian authorities into Chinese companies disrupt “normal business activity” and undermine “the confidence and willingness of market actors from other countries, including Chinese businesses, to invest and operate in India.”
The criticism came after India’s Enforcement Authority, the country’s main financial investigation agency, raided major Chinese smartphone company Vivo earlier this week over money laundering allegations.
In a statement The Enforcement Authority accused Vivo of tax fraud and said the firm transferred 624.8 billion rupees ($7.9 billion), mostly to China.
“These money transfers were made in order to uncover the huge losses of Indian listed companies in order to avoid paying taxes in India,” the report said.
“Vivo India employees, including some Chinese citizens, did not cooperate with the search and tried to escape,” the agency added.
Vivo Representative in India on Tuesday said the company was “cooperating with the authorities to provide them with all the information they need.”
Xiaomi also aims
At the time, Xiaomi India stated that “all of our operations strictly comply with local laws and regulations.”
Chinese phone makers dominate the Indian market, with Xiaomi being the top selling brand, according to data compiled by Counterpoint. Vivo is also in the top five brands.
