India Arrests Chinese Employee Of Smartphone Maker Vivo
India's Financial Crimes Agency announced that it has arrested a Chinese employee at smartphone manufacturing company Vivo.
Indian officials have not commented, but Vivo said it would pursue all legal options on behalf of employee Andrew Kwang.
Authorities raided Vivo's offices last year over allegations of illegal shipments from India to China.
According to industry data, it is the second largest smartphone brand in India after Samsung.
Vivo denies any wrongdoing and says it complies with Indian law.
The arrest comes amid rising tensions between India and China.
Last week, Reuters reported that Indian police accused Vivo of helping transfer money to news portal NewsClick, which is being investigated for illegally spreading Chinese propaganda.
The arrests were made on Tuesday under the Prevention of Money Laundering Act. “This is a very strict law and is treated as a civil offence, unlike regular foreign exchange offenses which can attract criminal charges,” said Atul Pandey, senior partner at law firm Khaitan.
The police accused Vivo of customs evasion. The company is owned by Chinese company BBK Electronics and also works with Indian brands like Opp and Realme.
Over the past 18 months, Indian authorities have also targeted other Chinese mobile companies such as Xiaomi, freezing assets worth $670 million.
Earlier this year, India's Electronics Minister, Rajeev Chandrashekar, told Parliament that Chinese companies had avoided paying $1.1 billion in taxes. He said the government had only managed to recover 18% of the money.
A senior consultant representing several Chinese companies in India said in an interview with the BBC that the move was initially aimed at putting pressure on the Chinese government. In 2020, deadly border clashes left 24 soldiers dead. India responded by banning hundreds of Chinese apps, including TikTok.
However, subsequent investigations led to major Chinese companies such as Xiaomi and Oppo India being accused of financial crimes. Both companies denied the allegations.
Since then, relations between the two neighbors have become tense, with India “strongly opposing” China's new map and recently claiming sovereignty over its territory.
