Vivo In Deep Trouble After India Accuses Firm Of Major Violations, China In Focus

The Enforcement Directorate of India has levelled serious allegations against Chinese smartphone manufacturer Vivo and its Indian affiliates, accusing them of visa violations and illegal money transfer amounting to $13 billion out of the country.

What Happened: India’s financial crime agency unveiled that several Vivo employees and associates, while applying for visas, concealed their employment details, according to a report by Reuters. The agency alleges that these individuals violated regulations by venturing into the “sensitive” locations in Jammu and Kashmir.

The statement issued by the agency on Tuesday reportedly detailed that at least 30 Chinese nationals entered India on business visas and worked for Vivo without disclosing their employment with the company.

India does not allow foreign nationals to enter or stay in Ladakh and parts of Jammu and Kashmir that are “protected” without a permit from authorities.

The announcement of these allegations occurs against the backdrop of growing friction between India and China over business practices. These tensions have escalated, especially after New Delhi imposed restrictions on foreign investments and banned multiple Chinese applications in retaliation to the border conflicts in 2020.

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Why It Matters: The Enforcement Directorate also claimed that these individuals had journeyed across India, including regions of Jammu and Kashmir and Ladakh, violating Indian visa conditions as part of the agency’s ongoing investigation into Vivo, the second-largest smartphone player in the Indian market.

The probe has already resulted in the arrest of Vivo executive Guangwen Kuang earlier this week over money laungering allegations. Vivo, which holds a market share of 17% in India, expressed its deep concern about the executive’s arrest and reaffirmed its commitment to legal compliance.

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