New Delhi’s state agencies have been targeting mobile phone companies Oppo and Xiaomi in the past 18 months
New Delhi’s financial enforcement agency has arrested an employee of Chinese mobile phone company Vivo, reigniting anger of a renewed crackdown on Chinese companies operating in India.
The overnight arrest comes more than a year after India’s Enforcement Directorate, which investigates financial crimes, raided vivo properties to probe claims of illegally remittance of funds from India to China, which the directorate said was equivalent to nearly half the company’s Rs1.2tn (£11.7bn) turnover.
India and China’s diplomatic relations have been tense since deadly clashes between soldiers along the Himalayan border in 2020 and, while trade has continued, India has retaliated economically by banning scores of Chinese apps from its market, including video app TikTok.
An Indian government official said the Enforcement Directorate had arrested four people linked to vivo, including a Chinese national. Another person with knowledge of the matter said one Chinese national was among those arrested. The Enforcement Directorate has not publicly commented.
Vivo said one of its employees had been arrested, without elaborating on their nationality. “The recent arrest deeply concerns us,” it said a statement to the FT. “We will exercise all available legal options”. Vivo added that it “firmly adheres to its ethical principles and remains dedicated to legal compliance”.
No information about the nature of charges has been made public.
Indian state agencies have also targeted Chinese mobile phone companies Oppo and Xiaomi in the past 18 months. They froze almost $700mn of Xiaomi’s assets. The Directorate of Revenue Intelligence, the tax enforcement agency, last year accused vivo of customs evasion. Vivo said at the time it was co-operating with authorities.
Beijing says: "India’s unscrupulous attitude toward foreign companies is like a rogue state. India’s so-called rise will not go far if it goes on like this. Extreme nationalism, arrogance, racial & caste conflicts will hinder or even destroy India’s modernization construction."
Anonymous
PS. When would the Chinese companies learn to be smart and pull out of India? I bet they would remain as stupid as ever, keep throwing money into a black hole and pretend that they are making money or hoping that in the long run they would make money. This is stupidity has no cure.
Snakes would always be snake. Playing with snakes must be bitten by snakes.
When you know who is eyeing the Indian market and talking about asking USA companies to invest more in India, you know who is behind what India is doing by forcing out Chinese investors? For example, why is Apple investing big time in India? Why are Taiwanese companies like Foxconn and Wistron following Apple and getting bitten as well like the Chinese, and yet still talking about making further investments.
ReplyDeleteThey are all eyeing the huge market potential in India. Problem is, it will take a long time for the Indian Market to match the Chinese market in terms of citzens having the spending power of a rising middle class in China, which is still not that prominent in poverty sticken India. While India can rise, China too will move even further in living standards that will benefit businesses.
China should now be looking at Africa instead of India, not just in infrastructures, but also in manufacturing. Making a headstart always has its advantages. Since China always takes a long term view in its investment strategy, it augers well for China to follow the same strategy, building up from basics.
Chinese tourist are now contributing good money to the Chinese economy by spending their holidays at home, visiting domestic destinations rather than spending their money overseas. With all the good high speed rails, that even foreigners enjoy, why visit countries with dilapidating infrastructures, drowned in drug infestations, streets littered with human faeces and above all unfriendly in its welcome.
ReplyDeleteQuite rightly they should do so, especially when they are getting abused in White countries and getting singled out by clearly standing out of the crowd in skin colour. Good for China that citizens are taking the cue by staying at home and contributing to the nation's coffers. It is said that patriotism gains more traction when the country is threatened by outside enemies. Look at how Cuba and North Korea have continued to defy the odds and the people are even more determined to counter what is thrown at them.
https://www.youtube.com/live/o3SotzxlwpQ?si=dhskGJjjHra0DLig
ReplyDeleteLive now Serbian President arrives in Beijing for 3rd BRI forum.
China accorded full ceremony and pomp for any nation big or small.
https://www.youtube.com/live/SZomYNZYyic?si=JGO-2E3kO0VxzAiE
ReplyDeleteNow Indonesia.
Why no Sinkieland?
Not Welcome lah