According to Reuters, the Financial Crime Investigation Bureau (ED) under India’s Ministry of Finance conducted a raid on more than 40 offices nationwide on charges of money laundering by Chinese smartphone maker Vivo.
Vivo is one of the top five smartphone companies in India. According to market research firm Counterpoint Research, Vivo’s market share in India’s smartphone market in the first quarter of this year is 15%. “We are cooperating with the Indian authorities to provide all the information they need,” Vivo said in a statement.
This year, India took action not only against Vivo but also against Xiaomi, another Chinese smartphone company, for allegedly engaging in financial-related illegal activities.
In May, the ED seized 55.5 billion rupees (about 91485 billion won), the same amount as the illegal remittance, from Xiaomi’s Indian account, saying that Xiaomi’s Indian subsidiary had detected illegal foreign currency remittances. Xiaomi said the ED’s claim was not true.
The Indian government is stepping up its crackdown on Chinese companies after a bloody clash on the Himalayan border in June 2020. In January 2021, India’s Ministry of Electronic Government Technology issued a notice permanently banning 59 Chinese apps, including TikTok, a popular video platform application.
TED PARK
ASIA JOURNAL
