Vivo under ED scanner, accused of visa violations and money laundering in India

Chinese smartphone giant Vivo finds itself in hot water as the Indian Enforcement Directorate (ED) levels allegations against its employees.

Reports suggest Vivo personnel, including those of Chinese origin, hid their employer details when applying for Indian visas. This development amplifies existing tensions between the two neighboring countries, especially in light of the 2020 border conflicts.

Potential Tax Evasion: Billions at Stake

Adding to Vivo's troubles is the ED's claim of visa condition breaches by its employees, who reportedly ventured into sensitive Indian territories like Jammu and Kashmir without requisite permissions.

This was brought to public attention following the detention of Guangwen Kuang, a Vivo executive, in a money laundering investigation.

A staggering amount of 1.07 trillion rupees (approx. US$13 billion) is said to have been funneled out of India by Vivo, leading to serious tax evasion concerns.

Market Dominance at Risk amid Geopolitical Strains

These mounting allegations threaten to undermine Vivo's stronghold in the Indian smartphone market, where it enjoys a significant 17% market share.

It draws attention to the complexities faced by overseas firms, especially Chinese entities, in navigating regulatory frameworks amidst geopolitical frictions.

As India and China grapple with unresolved border issues and escalating tensions, Vivo's purported actions add a corporate dimension to an already charged scenario.

While Vivo has been quick to underline its dedication to adhering to legal norms, the unfolding saga might shape the Indian administration's stance on Chinese trade and investments in the country.

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