That India e China do not look favorably on we certainly do not find out today. Territorial disputes have been going on for decades, especially since in 2020 the military of the two nations clashed again in Ladakh. Since, anti-China sentiment was born in India, which resulted in real boycotts against companies such as Xiaomi, OPPO e vivo, and even episodes of vandalism. The Indian government itself has also been no exception, enacting laws and regulations that have put a spanner in the works of China's companies. For example the ban of hundreds of Chinese apps, blocking of Chinese smartphone approvals or even the ban by Huawei and ZTE.
Upgrade 04 / 08: there are new implications on the judicial affair that sees India and vivo. Find all the details at the end of the article.
India investigates the Chinese brand vivo for illicit money trafficking
A paradoxical situation, if you think that the top 5 of the main smartphone manufacturers in India is composed of Xiaomi, Realme, vivo and OPPO (as well as from Samsung). But apparently the Indian government does not care much about the market trend, as shown by the colossal monetary seizure implemented precisely against the leader Xiaomi. But that's not all for Chinese companies, because in these hours the Indian authorities are investigating on the work of another brand, that is vivo.
The investigation conducted by the Enforcement Directorate, an Indian agency for the fight against financial crime (the same that condemned Xiaomi), started with searches and raids in 48 offices of vivo and 23 of subsidiaries across India. The reason is due to the suspicion that the company would be carrying out operations riciclaggio di denaro in the national market. The confirmation came to Reuters through a senior government official and an industry executive, enacting the Prevention of Money Laundering Act. For the moment, the details end here, but we will probably know more in the coming days.
The first blocks start | Update 07/07
It took only a few hours for the Indian authorities to act against vivo. The Enforcement Directorate declares to have blocked 119 bank accounts linked to the Indian division of the Chinese company, for a total of almost 59 million dollars frozen e 2 kg in gold bars (to date about 100.000 dollars). The accusation is the usual one, namely that the proceeds of vivo India have been illegally moved out of the country to declare minor income and carry out tax evasion. Specifically, almost 50% of the total proceeds (equal to 15,82 billion dollars) would have been moved to China.
If on one hand vivo declares that he wants to collaborate with the Indian authorities, they say that the company would not have been fully collaborative, with Chinese citizens who would have "tried to escape, remove and hide digital devices". Meanwhile, the Chinese embassy has called for fair treatment for the company, as all these investigations against China are damaging the confidence of foreign investors.
The accusations continue | Update 04/08
A month later, the Indian Directorate of Revenue Intelligence accuses the mobile division of vivo dell 'tax evasion for a total of approx 280 million of dollars. Hence the legal request from the DRI which will oblige vivo to justify his actions towards the Indian authorities. The Chinese company would have calculated the customs duties incorrectly, with "incriminating evidence"That would reveal his having"intentionally wrong the description of some imported items".⭐️ Discover the new Weekly Flyer of GizChina with always different exclusive offers and coupons.