In a turn of events that could have far-reaching consequences for Sino-Indian relations, Chinese smartphone maker Vivo is facing intense scrutiny from Indian authorities. India’s Enforcement Directorate (ED) has alleged that Vivo employees, including Chinese nationals, concealed their employer’s identity while applying for Indian visas. This revelation gains importance in the backdrop of rising tensions between India and China, particularly after border conflicts in 2020.
Claims say that Vivo channeled almost $13 Billion out of India
The ED has accused Vivo employees of violating visa conditions by entering sensitive areas in India like Jammu and Kashmir without proper permits. This issue comes to light after the arrest of Vivo executive Guangwen Kuang in a money laundering probe. The agency claims that Vivo channeled an eye-popping 1.07 trillion rupees (around US$13 billion) out of India, raising questions of tax evasion.
These allegations could dent Vivo’s position in the Indian market, where it holds a 17% share. It also puts the spotlight on how foreign companies, particularly those from China, navigate regulatory landscapes amid geopolitical tensions. Both India and China have border disputes and have recently seen heightened military and political clashes. Vivo’s alleged activities seem to add a corporate angle to this volatile mix.
Vivo has responded by emphasizing its commitment to legal compliance, but this scandal could act as a litmus test for the Indian government’s policies towards Chinese investments and businesses.
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(Via)
