NEW DELHI: India’s financial crimes agency has arrested a Chinese employee of smartphone maker Vivo, a significant development in the ongoing investigation into alleged financial wrongdoing by the company. Indian officials have not yet commented on the arrest, but Vivo confirmed the incident, stating that they would utilize all available legal options to support their employee, Andrew Kuang.
The arrest follows a raid conducted by Indian authorities on Vivo’s office last year, during which the company was accused of illegal remittances from India to China. Vivo, the second-largest smartphone brand in India after Samsung, has consistently denied any wrongdoing, asserting its compliance with Indian laws.
Indian Police Accuse Vivo of Illegal Transfer of Funds
Recent reports revealed that Indian police had formally accused Vivo of assisting in the illegal transfer of funds to NewsClick, a news portal under investigation for allegedly spreading Chinese propaganda. This development occurred within the context of escalating tensions between India and China.
Vivo, owned by China’s BBK Electronics, which also operates brands like Oppo and Realme in India, is not the only Chinese mobile phone company facing scrutiny. Xiaomi, another prominent Chinese brand, had assets totaling $670 million frozen by Indian authorities in the past 18 months. India’s minister of state for electronics and IT, Rajeev Chandrashekhar, disclosed earlier this year that Chinese companies had evaded taxes amounting to $1.1 billion, with the government managing to recover only a fraction of this amount.
While the crackdown initially appeared to be a response to a deadly border clash in 2020, leading India to ban several Chinese apps, investigations have expanded, implicating major Chinese firms like Xiaomi and Oppo India in financial crime allegations. Both companies have vehemently denied the accusations.
