On December 23, multiple media outlets reported that the Enforcement Directorate (ED) of India had recently detained several executives of Vivo India, including the interim CEO and CFO, as part of an anti-money laundering investigation.
In response to these actions, a spokesperson from Vivo expressed deep shock and stated that the recent arrests by Indian authorities demonstrate ongoing harassment, contributing to uncertainty in the entire industry. The company affirmed its commitment to using all legal means to respond to and challenge these allegations.
This is not the first time Vivo has faced legal issues in India. In October of the same year, Indian financial enforcement agencies arrested Vivo employees on allegations of money laundering. At that time, Vivo responded by asserting its strict compliance with local laws and regulations in India and expressed its intention to closely monitor the investigation and take all feasible legal measures in response.
Since the end of 2021, Indian authorities have conducted multiple raids on Chinese smartphone manufacturers like Xiaomi, Vivo, and OPPO, freezing and seizing funds from these companies' accounts in India under various pretexts. Yang Shucheng, Secretary-General of the China Mobile Association (CMA), told Interface News that the enforcement against Chinese companies in India is not random but rather a comprehensive investigation with stringent enforcement. He noted that the scrutiny extends beyond the companies themselves to their upstream and downstream partners and associated firms, a level of scrutiny not seen in other countries.
In light of the investigations against Chinese companies like Xiaomi and Vivo, a spokesperson for China's Ministry of Foreign Affairs stated that the Chinese government consistently requires Chinese enterprises to operate legally and compliantly overseas. The spokesperson affirmed China's firm support for its enterprises to safeguard their lawful rights and interests and urged the Indian side to act legally and provide a fair, just, and non-discriminatory business environment for Chinese companies operating in India.
