Amid reports that Indian authorities prevented Chinese smartphone maker Vivo from exporting 27,000 smartphones worth $15 million for more than a week, Chinese state-run publication Global Times has said that Indian officials should ensure compliance with laws and regulations, increase transparency, and protect the legitimate rights and interests of the Chinese mobile phone maker.
Whether this Vivo incident can be well resolved will have a strong demonstration effect on a vast number of other foreign companies, said a commentary in the publication, adding that the issue has once again raised eyebrows among Chinese companies about the Indian market, given India’s growing restrictions and investigations targeting Chinese companies this year.
“Relevant departments in India need to further investigate and make clarifications in a timely manner to dispel anxiety among the business community,” said the publication.
“Vivo, on the other hand, should actively cooperate with relevant departments in India to clarify the actual situation. If the company has received unfair treatment, it should not hesitate to take effective measures to defend its legitimate interests,” it added.
According to the report, Chinese companies such as Vivo have long contributed to the Indian economy and operate legally.
“India’s economic growth needs foreign investment. If India uses more unfair practices to aggravate foreign companies’ concerns, it will not only hurt the interests of Chinese companies but the reputation of India’s business environment may be irreversibly damaged,” claimed the report.
According to technology analysts, it will be difficult for India to rid its dependence on China’s relatively cost-effective mobile phones. India has stepped up its crackdown on Chinese firms over the years.
The Indian government is looking into cases of alleged tax evasion by three Chinese mobile companies — OPPO, Vivo India, and Xiaomi.
The companies were served notices by the Directorate of Revenue Intelligence (DRI) for duty evasion.
India has also banned more than 300 Chinese apps, including Tencent’s WeChat and ByteDance’s TikTok. The country is now bolstering its domestic smartphone and chip manufacturing sector.
