The Enforcement Directorate carried out multiple raids against the Chinese tech giant Vivo, a leading mobile manufacturer. The raids have happened at a time when the government has been investigating maximum firms that originate from a common country. Moreover, investigation into Vivo and its firms is ongoing at the moment.
ED investigates Vivo
Local affiliates of Vivo Mobile Communications Co. and ZTE Corp. were under investigation for possible financial irregularities in May. According to a Bloomberg story, an investigation into Vivo was requested in April to see whether there were any “serious abnormalities in ownership. And financial reporting.” ZTE’s books were also rumored to be being examined. Investigations have also been initiated against Xiaomi Inc., another Chinese mobile manufacturers like Vivo. The security measures were put in place when tensions were high after the 2020 attack on Galway Valley.
The Enforcement Directorate had already taken Xiaomi’s assets under FEMA. That order had been suspended by the Karnataka High Court. Under the terms of the Foreign Exchange Management Act (FEMA), 1999. Hence, the ED had taken Rs 5,551.27 crore from smartphone juggernaut Xiaomi India. The China-based Xiaomi group has a fully owned subsidiary called Xiaomi India.
Contrary to data released by New Delhi, which claimed that India traded with the US more than any other nation last year, China had said in May that it remained India’s top trading partner. It demonstrated a readiness to take action to enhance regular commerce with India by pointing out that the value of bilateral trade between China and India was $125.66 billion.