June 16, 2024

New Delhi/Hong Kong

An executive at Vivo, one of China’s top smartphone makers, has been arrested in India in connection with a money laundering probe, raising fears of a renewed crackdown on Chinese businesses in the country.

Guangwen Kuang, the head of administration at Vivo India, was taken into custody on Tuesday by India’s Enforcement Directorate (ED), his lawyer, Mudit Jain, told CNN. The ED is the country’s main financial crimes investigation agency, responsible for probing money laundering and violations of foreign exchange laws.

Kuang, a Chinese national, was arrested alongside three other people and would be held in custody for three days, according to a court document shared with CNN by Jain.

One of the other detainees was a person who had helped Vivo set up its offices in India, and the other two were accountants, according to the document.

In a statement to CNN, a Vivo spokesperson confirmed that one employee had been arrested and vowed that the company would “exercise all available legal options.”

“The recent arrest deeply concerns us,” the representative said. “Vivo firmly adheres to its ethical principles and remains dedicated to legal compliance.”

Allegations of money laundering against Vivo were first made in July 2022, when the ED said it had carried out searches at 48 Vivo locations in the country and seized $60 million from the company’s bank accounts.

The agency accused Vivo of tax fraud and said the firm had remitted 624.8 billion rupees ($7.9 billion), mostly to China.

“These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India,” the ED said at the time.

The company said at the time that it was cooperating with the investigation.

The raids came two months after India seized more than $700 million from another big Chinese smartphone maker, Xiaomi, which was also accused of moving money out of the country illegally.

Xiaomi denied wrongdoing, saying all its operations were “firmly compliant with local laws and regulations.”

Xiaomi and Vivo are hugely popular with Indian consumers, both ranking in the top three of the country’s vast smartphone market behind Samsung.

Despite the regulatory crackdown, Vivo is still India’s second biggest smartphone brand, commanding 17% of the market in the second quarter, according to Counterpoint Research.

Xiaomi, meanwhile, has seen its market share slip from 19% to 15% in the same period.

Relations between China and India soured significantly after a deadly clash at their shared contested border in 2020. Authorities in India later banned Chinese apps and subjected deals with Chinese firms to greater scrutiny.

Since then, tensions between India and China have continued to simmer.

Vivo’s troubles this week prompted a swift reaction in Chinese media. State-run tabloid Global Times accused India of “rising protectionism.”

The executive’s detainment appears to signal a “hardened crackdown on Chinese companies,” the outlet said in a report Wednesday.

China’s embassy in India has previously warned that the probes of Chinese firms in India risked damaging its reputation among foreign investors and have disrupted “normal business activities.”

— Vedika Sud contributed to this report.

litmatch make new friends apps on google play
gift code myths of moonrise january 2023 youtube
pull the pin mod apk 0 138 1 unlocked happymod
dragon age senior creative director leaves bioware vapeone uk
new method dice dreams hack cheats free rolls mod generator
how to get free gems cash fast in project makeover reddit
download beach buggy racing 2023 01 11 apk mod free 5play
Free TikTok Coins: The Holy Grail of Success
Gewinnen von Kostenlosen Münzen: TikTok-Herausforderungen und Belohnungen
Coin Master Free Spins Myths and Facts: Unraveled
Unlocking Avacoins in Avakin Life: Insider Techniques
Bingo Blitz Credits Hack: Expert Recommendations
Free Spins in Coin Master: Your Ticket to Village Domination
how to claim free primogems from game awards 2022 reward
ZEPETO Zems Farming Strategies: Success Tips
match masters free coins archives smartphoneprice com
Free TikTok Coins: Your Ticket to Stardom
Unlocking Gems in Brawl Stars: Insider Techniques
dragon city hack cheats generator for free gems 2023
family island free rubies familyislandgame tiktok
hay day free diamonds generator without human verification
litmatch make new friends apps on google play
myths of moonrise codes wiki 2022 september theclashify
download pin rescue mod v2 0 4 unlimited money for android
evony the king s return hack free gems safe method
dice dreams free rolls generator online 2 may 2022
project makeover mod apk v2 50 1 unlimited money apkloo
beach buggy racing mod apk v2023 01 11 unlimited money
Free TikTok Coins: The Game Changer
Ganando Monedas Gratis: Desafíos y Recompensas en TikTok

Leave a Reply

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