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The crackdown on Chinese companies is mainly politically driven: experts

via:环球时报     time:2021/12/24 11:00:29     readed:95

The Indian government is attacking Chinese companies again. In a major crackdown on mobile phone manufacturers and distributors across India, the Revenue Bureau of the Finance Ministry raided the offices and manufacturing plants of Xiaomi, OPPO, OnePlus, Foxconn and others from greater China on Friday and Friday, The Business Standard reported Wednesday.

The raids, which began on Friday night, involved more than two dozen locations in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Guwahati. Redrice, OPPO and several Foxconn offices near the Scrieborough campus were the first to be searched. According to the Economic Times of India on Wednesday, the raids continued until the night of 22, when the tax bureau announced the operation. The companies' factories, warehouses and offices, as well as the homes of some of their executives, as well as some of their distributors, were raided, according to people familiar with the matter. Executives at some companies in India have also been questioned.

According to the Economic Times, an Indian official claimed that there was "credible intelligence" showing that the Chinese companies hid revenues, avoided taxes and cooked the books, with some companies making losses on paper but actually making profits. Some fintech companies are also being targeted in the raids, according to the Business Standard.

"As a responsible company, we take it very seriously to ensure that we comply with all laws in India. As an investment partner in India, we are cooperating fully with the Indian authorities to ensure they have all the information they need." In a statement, OPPO also said, "As an investment partner in India, we highly respect and comply with the laws of India. We will continue to cooperate fully with the authorities in accordance with procedures." According to the Global Times, OnePlus has not responded to this, while Foxconn said it is looking into the situation.

This is not the first such raid on a Chinese company. In August, several OF ZTE's Offices in India were raided and its executives questioned over allegations of tax evasion, the Business Standard reported. Shortly after clashes between Indian and Chinese troops in the Galwan Valley last year, India's tax authorities raided more than a dozen sites linked to Chinese nationals, alleging that several of them and their partners were suspected of laundering money through shell companies.

Lin Minwang, a researcher at fudan University's Institute of International Studies, told the Global Times on Tuesday that India's crackdown on Chinese companies is mainly politically driven. "Closing doors and killing pigs" is a very traditional practice in India. In the past, when India's relations with Europe and the United States were not good, European and American companies had similar experience, and many companies withdrew from India. Lin said this is partly because of the poor economic situation in India and partly because some people in India are encouraging economic decoupling from China and they don't care whether Chinese companies are interested in the Indian market or not. Lin Minwang says, overall, the current Chinese companies in India's business environment more bad, and this kind of tax on the questionnaire in accordance with the laws and regulations, but its political and economic intention is clear, the technique is also very poor, so Chinese enterprises in the future to be more standardized management, don't let the noise of the Indian side to find an excuse to hit.

Source: Global Times

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