December 9, 2023

India’s anti-money laundering agency raided more than 40 offices of Chinese phone maker Vivo across the country on Tuesday over allegations of money laundering, the latest in a series of developments that illustrate the growing shadowy relationship between New Delhi and companies of Chinese origin.

The Enforcement Directorate has searched Vivo offices across the states of Uttar Pradesh, Bihar, Madhya Pradesh and Maharashtra, according to local media reports.

In a statement, a Vivo spokesperson told TechCrunch that the company is cooperating with the authorities.

“Vivo India is cooperating with the authorities to provide them with all the required information. As a responsible company, we are committed to fully complying with the laws in India,” the spokesperson said, without elaborating on Ed’s actions.

The CEO is seeking to investigate whether Vivo has had any “significant ownership and financial reporting irregularities” for several months, Bloomberg reported in April.

In the same month, management confiscated $725 million from Xiaomi India alleging that the company had illegally transferred funds in the name of royalties based on “instructions from Chinese parent group entities.”

Xiaomi refuted the accusations and separately said Executive faced threats of ‘physical violence’ During the investigation, Reuters reported earlier. The company also Appeal against the ruling of the enforcement agency In the Karnataka High Court, the decision is currently pending.

India Cellular and Electronics Association, a lobbying group representing several tech giants including Apple, Google and Amazon, in May urge New Delhi to intervene and alleged that Ed lacks an understanding of how royalty payments work in the tech business.

The raids come on the heels of a brewing geopolitical tension between the two nuclear-armed neighbors.

India banned more than 200 Chinese apps including TikTok and PUBG Mobile in mid-2020 due to national security concerns shortly after a border skirmish between the two countries’ armed forces.

The South Asian market, which did not officially specify China in the ban requests, has so far avoided any tough restrictions on Chinese smartphone makers.

Chinese smartphone makers continue to dominate the Indian market. Four of India’s top five manufacturers were Chinese in the quarter ending in March. Xiaomi maintains the support position while Vivo ranks fourth on the chart, according to research firm Counterpoint.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *