- Sunday, May 05, 2024
By: Shubham Ghosh
AS India’s Enforcement Directorate (ED) continued its searches at the premises of Chinese firms in the country in a money-laundering case, Wang Xiaojian, counsellor and spokesperson from Chinese Embassy in India reacted saying frequent investigations by Indian authorities into Chinese companies “chill the confidence and willingness of market entities from other countries, including those from China to invest in India”, Indo-Asian News Service (IANS) reported on Thursday (7).
Xiaojian said the essence of the economic and trade cooperation between the two Asian neighbours is based on mutual benefit and win-win results.
The Chinese official also tweeted about the raids on Wednesday (6) saying, “Response on the raid by the Indian authority on vivo India: We hope the Indian side will abide by laws as they carry out investigation&enforcement activities&provide a truly fair, just&non-discriminatory business environment for Chinese companies investing&operating in India.”
Response on the raid by the Indian authority on vivo India: We hope the Indian side will abide by laws as they carry out investigation&enforcement activities&provide a truly fair, just&non-discriminatory business environment for Chinese companies investing&operating in India. pic.twitter.com/LX27f7LFxr
— Wang Xiaojian (@ChinaSpox_India) July 6, 2022
“The Chinese government has always asked Chinese companies to comply with local laws and regulations in their overseas operations and will firmly support Chinese companies to maintain their legitimate rights and interests,” a Chinese statement said late on Wednesday.
“The Indian side should act in line with laws and regulations, and provide a fair and non-discriminatory business environment for Chinese firms,” it added.
The ED raided as many as 44 locations in 22 Indian states on Tuesday (5) and Wednesday and the directors of some of the companies associated with Vivo left the country.
IANS cited sources saying that two of the Chinese directors of Solan, a company based in the northern Indian state of Himachal Pradesh which was associated with Vivo, have likely exited India as the investigating agency registered a prevention of money-laundering case.
The ED has so far received information about money-laundering worth Rs 10,000 crore (£1 billion) during the raids, according to its sources.
The Chinese embassy spokesperson said that “frequent investigations by Indian authorities into Chinese enterprises not only disrupt normal business activities and damage the goodwill, but also impede the improvement of business environment in India”.
India’s Central Bureau of Investigation has also been carrying out a probe into the case and lodged a separate first information report.
Vivo had earlier said that it is cooperating with the Indian authorities to provide them with all required details.
“As a responsible corporate, we are committed to be fully compliant with laws,” a Vivo spokesperson was quoted as saying.
In April, the ED seized Rs 5,551.27 crore (£585 million) of Xiaomi Technology India Private Ltd lying in bank accounts under the provisions of Foreign Exchange Management Act (FEMA) in connection with illegal outward remittances made by the firm.
