India’s frequent probes of firms hurting business confidence

MUMBAI: Multiple investigations by Indian enforcement agencies into Chinese firms are damaging the confidence of foreign entities investing and operating in the country, China’s embassy in the South Asian nation has said. Many Chinese firms have struggled to do business in India after political tension surged following a border clash in 2020. India has cited security concerns in banning over 300 Chinese apps since, and toughened rules on Chinese investment.

Comments by the embassy follow raids this week by the ED, targeting smartphone maker Vivo, owned by China’s BBK Electronics, in a money laundering investigation. Such frequent investigation “impedes the improvement of business environment in India and chills the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India,” the embassy said in a statement.