Raids were carried out at 44 locations across India in action against top Chinese mobile manufacturer, Vivo, and several firms linked to it, sources said. The development comes amid the government’s increased scrutiny for businesses that trace their origin to the neighboring country.
In May, local units of ZTE Corp. and Vivo Mobile Communications Co. were investigated for alleged financial irregularities. Xiaomi Corp. is another Chinese firm that has been on the radar of the probe agency.
An inquiry was sought in April against Vivo to see if there were “significant irregularities in ownership and financial reporting”, a report by Bloomberg said. The books of ZTE were also believed to be under scanner.
The scrutiny against Chinese firms tightened after tensions at the border between the two countries in 2020, leading to multiple rounds of talks. More than 200 mobile apps, including TikTok, have banned.
In May, China had said it remains India’s largest trading partner in counter to figures published by New Delhi, which said India did more trade with the US than with any other country last year. Pointing out that the bilateral trade between India and China stood at at $125.66 billion, it had shown the willingness to take measures to advance normal trade with India.
News agency had reported in May that Zhao Lijian, Chinese foreign ministry spokesperson, had responded on the probe against ZTE and Vivo “The Chinese government is closely following the situation. The Chinese government always asks Chinese companies to abide by laws and regulations when doing business overseas,” Zhao had said.
“In the meantime, we firmly support Chinese companies in safeguarding their legal rights and interests. The Indian side should act in accordance with laws and regulations and provide a fair, just and non-discriminatory business environment for Chinese companies operating in India.”