The Wire Staff 
New Delhi: After the arrest of two Chinese nationals by the Enforcement Directorate, the Chinese foreign ministry said on Monday, December 25, that Beijing was closely monitoring developments and hoped that India will provide it with a fair and “non-discriminatory” business environment.
According to reports, the ED has, so far, taken into custody seven people, including two Chinese nationals, in connection with charges of money laundering against the Indian subsidiary of the Chinese phone manufacturer, Vivo.
The interim chief executive officer of Vivo India, Chinese national Hong Xuquan alias Terry, its chief financial officer Harinder Dahiya and consultant Hemant Munjal were taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA), PTI had reported on Saturday, December 23.
Two months earlier, the ED had arrested the Lava International managing director Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik in connection with the same case. All of them are in judicial custody at present.
In answer to a question on the arrest of officials of the Chinese firm in India, Chinese foreign ministry spokesperson Mao Ning said that Beijing was “closely following” the case.
Backing the Chinese firm, she advised India to create an equitable business environment for all foreign companies.
“The Chinese government firmly supports Chinese businesses in safeguarding their lawful rights and interests. We hope that India will fully recognise the mutually beneficial nature of the business cooperation between our two countries and provide a fair, just, transparent and non-discriminatory business environment,” she said.
The Chinese foreign ministry spokesperson stated that the Chinese embassy and consulates in India would continue offering consular protection and assistance to the individuals concerned in accordance with the law.
The ED, in its court documents for the first four detainees, has asserted that they helped Vivo India gain unjust profits – something that posed a threat to India’s economic sovereignty.
Last July, the ED had raided Vivo India based on allegations that it had “illegally” transferred Rs 62,476 crore to China to avoid payment of taxes in India.
After the latest arrests, Vivo spokesperson had said that the the firm was “deeply deeply alarmed by the current action of the authorities”.
“The recent arrests demonstrate continued harassment and as such induce an environment of uncertainty amongst the wider industry landscape. We are resolute in using all legal avenues to address and challenge these accusations,” he said.
India has tightened the monitoring of activities of Chinese firms after the start of the border stand-off in 2020.