The repeated crackdowns on Chinese companies, exemplified by the recent actions against smartphone brand Vivo, are painting a concerning picture of India as a "graveyard for foreign companies," according to China's state-run media, Global Times.
The Enforcement Directorate (ED) in India arrested three high-ranking employees of Vivo's India unit, including the interim CEO, CFO, and a consultant, under the Prevention of Money Laundering Act. This comes after the ED arrested a Vivo employee and three others two months earlier in a money laundering case, allegations Vivo has refuted.
The Global Times suggests that India's treatment of Chinese companies reflects a tendency to politicize economic matters. Qian Feng, from Tsinghua University, believes these actions will undermine bilateral economic and trade cooperation.
Lou Chunhao, Executive Director at the Institute of South Asian Studies, notes that India's crackdown aims to impede the progress of Chinese companies. The report criticizes India's actions, stating they are counterproductive and that the entry of Chinese smartphone producers benefits India's industry by fostering competition and reducing costs.
The recent arrests include Vivo India interim CEO Hong Xuquan, CFO Harinder Dahiya, and consultant Hemant Munjal, with a Delhi court sending them to three-day ED custody.
Experts, including Dai Yonghong from Shenzhen University, argue that India's unilateral and protectionist measures, such as banning Chinese apps and scrutinizing investments, will have a lasting impact on China-India economic and trade relations. They emphasize the need for the two countries, as major developing nations in Asia, to strengthen cooperation for mutual development.
(With Agency Inputs)
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