“Frequent investigations by the Indian side into Chinese enterprises not only disrupt the normal business operations of the enterprises and damage the goodwill of the enterprises,” the Chinese embassy in India said in a statement issued late on Wednesday. “[It] it also hinders its improvement [the] business environment in India and freezes the confidence and willingness of market entities from other countries. . . to invest and do business in India’. The Enforcement Directorate (ED), the law enforcement agency responsible for economic and financial crimes, raided more than 40 Vivo offices across India on Tuesday night, according to Indian media reports. The agency was investigating irregularities in the company’s ownership, the reports said. The raids followed a dispute with Xiaomi, another Chinese smartphone maker, over royalty payments. The DOJ seized more than $700 million from Xiaomi in April for violating the country’s foreign exchange laws. Xiaomi said it was awaiting an order from the Indian courts on its appeal against the seizure, adding that all royalty payments were “legal and based on valid legal contracts”. The ED later denied allegations that it had coerced Xiaomi executives into giving their statements, after Reuters reported that the company had made the allegation in court filings. Vivo said it is working with authorities to provide them with the required information. ED did not immediately respond to a request for comment.
