India accuses Vivo of visa violations and money laundering

In a surprising development with potentially significant implications for Sino-Indian relations, Chinese smartphone manufacturer Vivo is now under intense scrutiny by Indian authorities. The Enforcement Directorate (ED) in India has raised allegations that employees of Vivo, including Chinese nationals, concealed their employer's identity when applying for Indian visas. This revelation gains heightened importance against the backdrop of escalating tensions between India and China, particularly following border conflicts in 2020.

India accuses Vivo of visa violations and money laundering

The ED has accused Vivo employees of breaching visa conditions by entering sensitive areas in India, such as Jammu and Kashmir, without the necessary permits. This issue comes to the forefront following the arrest of Vivo executive Guangwen Kuang in connection with a money laundering probe. The agency contends that Vivo conducted a staggering 1.07 trillion rupees (approximately US$13 billion) out of India, sparking concerns about potential tax evasion.

These allegations pose a significant challenge to Vivo's standing in the Indian market, where it currently holds a 17% market share. They also shed light on how foreign companies, particularly those hailing from China, navigate complex regulatory landscapes amid ongoing geopolitical tensions. Both India and China have longstanding border disputes and have witnessed recent escalations in military and political conflicts. Vivo's alleged activities add a corporate dimension to this already volatile mix.

Vivo, in response, has emphasized its commitment to legal compliance. However, this scandal may serve as a litmus test for the Indian government's approach to Chinese investments and businesses, shaping the future landscape of foreign investments in the country.

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