China’s government hit out at what it claimed were frequent investigations into domestic companies by Indian authorities, an attack prompted by a recent raid of phone maker Vivo’s offices.
Wang Xiaojian, representative of the Chinese embassy in India, released a statement criticising the nation after its Enforcement Directorate (ED) announced it had searched 48 Vivo locations and seized INR4.7 billion ($59.4 million) from the company, across 119 bank accounts.
The ED explained it had taken the action on suspicions of money laundering.
Xiaojian said Chinese officials were monitoring the Vivo situation closely, stating it always urges enterprises to abide by laws and regulations overseas.
However, he added “frequent investigations” into Chinese enterprises disrupt normal business activities and damage goodwill, and “also impedes the improvement of business environment in India and chills the confidence and willingness” to invest and operate in the nation.
Vivo is the latest example of a Chinese phone maker to come under fire in India, after authorities launched a probe into Xiaomi over allegations it illegally remitted $716 million to a trio of overseas entities.
Reuters reported ED officials seized $725 million from Xiaomi’s local accounts as part of the probe.
In addition to smartphone players, India has taken a hard line on Chinese apps, including TikTok and PUBG Mobile, citing security fears.