China says India’s frequent investigations into Chinese firms have chilling impact on business confidence

Published by
Peter Kavinsky

“Frequent” investigations into local units of Chinese firms by Indian authorities “impedes the improvement of business environment” in India and “chills the confidence and willingness” of other foreign nation’s businesses to invest and operate in the South Asian market, China’s embassy in India said in a statement, following raids into Vivo offices earlier this week.

“The frequent investigations by the Indian side into Chinese enterprises not only disrupt the enterprises’ normal business activities and damage the goodwill of the enterprises, but also impedes the improvement of business environment in India and chills the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India,” Wang Xiaojian, Spokesperson of Chinese Embassy in India Counsellor, said in a written statement.

The Enforcement Directorate, India’s anti-money laundering agency, earlier this week raided dozens of phone-maker Vivo’s offices across multiple states. In a statement to TechCrunch, Vivo said it was cooperating with Indian authorities.

The incident follows a similar investigation into Xiaomi, the top smartphone vendor in India. The ED seized $725 million from Xiaomi India, accusing the company had violated the country’s foreign exchange laws. Executives of Xiaomi, which has refuted the charges and has legally challenged the ruling, faced “physical violence” threats during their investigation, Reuters reported earlier.

India Cellular and Electronics Association, a lobby group that represents several tech giants including Apple and Amazon, in May urged New Delhi to intervene and alleged that ED lacked understanding of just how royalty payments worked in the tech industry. (The Indian Enforcement Directorate said earlier that Xiaomi had remitted $725 million to three foreign-based entities “in the guise of royalty” payments.)

Xiaojian said Wednesday evening that the world’s largest population always asks Chinese firms to follow laws and regulations overseas and “wishes” that the Indian side provides a “fair, just and non-discriminatory business environment” to Chinese firms.

“The essence of China-India economic and trade cooperation is for mutual benefit and win-win results. The bilateral trade volume between China and India strikes a historical record of over 100 billion USD in 2021, which reflects the huge potential and broad prospect of economic and trade cooperation between our two countries. China wishes the Indian side to investigate and enforce the law in compliance with laws and regulations, and effectively provide an fair, just and non-discriminatory business environment for Chinese enterprises to invest and operate in India,” he added.

Tension between the two nuclear-armed neighboring nations escalated in 2020 after a skirmish at the border. India has since introduced several restrictions on Chinese firms (without ever naming China in its orders.)

In the past two years, New Delhi has banned hundreds of Chinese apps including TikTok, UC Browser and PUBG Mobile, citing national security concerns. India also amended its foreign direct investment policy in 2020 to require all neighboring nations with which it shares a boundary to seek approval from New Delhi for their future deals in the country. Previously, only Pakistan and Bangladesh were subjected to this requirement.

The investment rule has significantly curtailed Chinese investors’ ability to back Indian businesses and startups. Prior to the amendment, Tencent and Alibaba were among the most prolific backers of Indian startups.

Source: TechCrunch

Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org

Share
Published by
Peter Kavinsky

Recent Posts

  • News

Energy Crisis: “If a coal-fired power plant has to keep going, so be it”

Tuehat is the air in Herne? “Almost everywhere,” says Denise Herter. She lives in the…

2 mins ago
  • News

Russians fired from their territory eight communities in Sumy and Chernihiv . regions

the army of the Russian Federation continues to shell the areas of the Sumy and…

4 mins ago
  • News

The singing teacher rated the main hits of the summer: what is the secret of Shaman’s voice and the super popularity of Asti’s new song

Anna Asti's track "Bar" has been at the top of the charts all summerA picture:…

8 mins ago
  • News

Pellegrini announces Bartra’s move to Trabzonspor | Sports

Betis manager, Chilean Manuel Pellegrini, revealed this Sunday that defender Marc Bartra "decided to leave"…

9 mins ago
  • News

Lorient vs Olympique Lyonnais LIVE: Ligue 1 team news, lineups and more

An overview of the Stade Yves Allainmat – Le Moustoir (AFP via Getty Images) Follow…

10 mins ago
  • News

VAR of Alanyaspor – Beşiktaş match has been announced

News Besiktas News VAR of Alanyaspor - Beşiktaş match has been announcedBeşiktaş will be a…

13 mins ago