New Delhi: The Enforcement Directorate (ED) raided Vivo and its dealers at 44 production and operation sites across the country on July 5.

The spokesperson of the Chinese Embassy in India, Wang Xiaojian, on Wednesday responded to the raids conducted on Vivo and said, “The frequent investigation of Chinese companies by the Indian side not only disrupts the normal business activities of the companies and damages the goodwill of the companies.”

The Enforcement Directorate (ED) conducted raids at 44 production and operation sites of Vivo and its dealers across the country on July 5. The searches were carried out under sections of the Prevention of Money Laundering Act (PMLA) in several states, including Delhi, Uttar Pradesh, Meghalaya and Maharashtra.

Meanwhile, Vivo Directors Zhengshen Ou and Zhang Jie have fled from India after the ED intensified its inquiry into the money laundering case against the Chinese smartphone manufacturing company.

ED Raids At Chinese Companies

This was not the first time that a Chinese-owned company was under the radar of Indian agencies.

Earlier, the Income Tax Department had conducted searches at the offices of Chinese telecom company Huawei. On July 5, the ED seized Rs 5,551.27 crore of smartphone giant Xiaomi India under the provisions of the Foreign Exchange Management Act (FEMA).

Xiaojian said such investigations hinder the improvement of India's business environment. He added it dampens the confidence and willingness of market players from all over the world, including Chinese companies, to invest and operate in India.

He said, "China is closely monitoring this matter. The Chinese government has always required Chinese companies to operate legally and compliantly overseas. At the same time, it firmly supports Chinese companies in safeguarding their legitimate rights and interests."