In a development that could have far-reaching implications for Sino-Indian relations, Chinese smartphone maker Vivo is facing increasing scrutiny from Indian authorities. India’s Enforcement Directorate (ED) has alleged that Vivo employees, including Chinese citizens, concealed the identity of their employers while applying for Indian visas. The discovery assumes importance at a time when tensions between India and China are rising, especially after border clashes in 2020.

According to statements, Vivo company withdrew approximately 13 billion dollars from India

ED has accused Vivo employees of violating visa conditions by entering sensitive areas of India like Jammu and Kashmir without proper permits. The issue arose after Vivo CEO Guangwen Kuang was arrested due to a money laundering investigation. The agency alleged that Vivo received a staggering 1.07 trillion rupees (about $13 billion) from India, raising questions about tax evasion.

The allegations could weaken Vivo’s position in the Indian market, where it has a 17% share. It also examines how foreign companies, particularly those from China, navigate the regulatory environment amid geopolitical tensions. Both India and China have border disputes and have recently experienced escalating military and political conflicts. Vivo’s alleged activity appears to add a corporate perspective to this volatile mix.

Vivo responded by emphasizing its commitment to complying with the law, but the scandal could be a litmus test for the Indian government’s policies on Chinese investment and trade. Source