Multiple investigations by Indian enforcement agencies into Chinese companies are damaging the confidence of foreign entities investing and operating in the country, China's embassy in the South Asian nation has said.
Many Chinese firms have struggled to do business in India
after political tension surged following a border clash in 2020. India has
cited security concerns in banning more than 300 Chinese apps since, and
toughened rules on Chinese investment.
Wednesday's comments by the embassy follow raids this week
by a financial crime fighting agency, the Enforcement Directorate, targeting
smartphone maker Vivo, owned by China's BBK Electronics, in a money laundering
investigation.
Such frequent investigation "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," the embassy said in a statement.
Raids were conducted at 44 production and operation sites of
Vivo and related entities across India, and China was closely following
progress, it added.
This week Vivo said it was cooperating with authorities and
was committed to full compliance with Indian laws.
Spokespersons for the Indian agency and the government did
not immediately respond to requests for comment.
In May, Reuters reported that Xiaomi, one of India's biggest
smartphone sellers, had said in court that its executives faced threats of
violence and coercion during agency questioning about accusations of illegal
remittances.
Xiaomi has denied wrongdoing, and the agency denied the accusations
at the time.
India's tighter scrutiny also led China's Great Wall Motor
to shelve plans to invest $1 billion and lay off all employees there this
month, after New Delhi denied regulatory approval for purchase of a factory. ©
Reuters
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