India Toughens Stance on Chinese Corporations
The Indian government has arrested a Chinese employee of the smartphone giant Vivo. This move is the latest development in India’s ever-tightening measures against Chinese corporations operating within its borders.
The arrest is perceived as retaliation for the deadly border clash between India and China in 2020, reflecting the strained economic and political relations between the two Asian powers.
A Broadening Crackdown
The arrest comes on the heels of India’s ban on hundreds of Chinese apps, including the viral video-sharing platform TikTok. These measures are viewed as strategic moves to exert pressure on the Chinese government. A senior legal counsel representing Chinese companies in India, who requested to remain anonymous, reflected this sentiment in an interview with the BBC.
Accusations Against the Arrested Employee
The detained Vivo employee stands accused of multiple offenses.
Read More:-Credit card: Know 5 kinds of credit card charges and penalties; how to avoid them
Indian authorities allege that the employee entered the country fraudulently and set up a Chinese-controlled network, thereby compromising the economic sovereignty of India. Allegations of working without appropriate visas, violating employment visa rules, and engaging in money laundering further complicate the case.
Vivo Under Scrutiny
The Enforcement Directorate (ED) has also accused Vivo of masking Chinese control over Indian entities and using forged documents to open bank accounts. The ED asserts that Vivo has illicitly transferred more than Rs 1 lakh crore out of India, thereby violating Foreign Direct Investment norms. Investigations into Vivo’s financial activities from 2014 to 2020 indicate no profit declaration and no payment of income taxes in India.
These allegations compound the legal troubles the tech company has faced since a raid on their offices last year unearthed evidence of a Rs 62,476 crore illegal transfer to China to dodge Indian taxes.
