- Vivo executives arrested in India.
- Accused of money laundering.
- Tensions in India-China relations.
On Tuesday, India’s financial crime agency detained four executives of the Chinese smartphone manufacturer Vivo, including one Chinese national, according to information obtained by Reuters from two sources with direct knowledge of the situation.
The legal complications that the Chinese phone manufacturer faces in India are compounded by the arrests. These arrests occur in the midst of escalating hostilities between Beijing and New Delhi over matters. Including border disputes and India’s growing scrutiny of Chinese investments and enterprises.
Vivo and the country’s Enforcement Directorate (ED) had no quick reaction to email and phone requests for comment.
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According to the first source, the executives were arrested in connection with an ongoing 2022 case in which the ED seized the company’s offices and accused it of money laundering.
Consistently, the organization has refuted the accusations. It said it was “fully committed to complying with laws” and worked with authorities to give all relevant information. Vivo is a subsidiary of BBK Electronics, a Chinese company that also manages the Indian markets for Oppo and Realme.
According to Counterpoint, Vivo ranks second in smartphone shipments in India behind Samsung with 17% market share.
According to the initial source, Vivo executives were arrested after the ED summoned them to its Delhi office for questioning. Additionally, they are scheduled to appear in court later on Tuesday, the individual stated.
In 2022, the ED blocked 119 bank accounts associated with Vivo’s India operations. However, the action was subsequently overturned by a court. The ED alleged that Vivo India had unlawfully transferred 624 billion rupees ($7.5 billion) to China to “conceal enormous losses” in India and evade tax payments.
A Reuters report last week stated that Indian police had formally accused Vivo of facilitating the illicit transfer of funds to a news portal under investigation for disseminating Chinese propaganda. Vivo has not commented on this matter.
In 2020, twenty Indian soldiers and four Chinese troops were killed in a military confrontation on their contested Himalayan border. This event has contributed to a deterioration in relations between India and China.
Subsequently, India has banned hundreds of Chinese applications, including TikTok, citing national security concerns, and has increased scrutiny of Chinese investments entering the country.
New Delhi has recently intensified its scrutiny of automaker BYD’s proposal to invest $1 billion in India to manufacture electric vehicles and batteries, which has compelled the EV manufacturer to abandon its plans.
