Chinese business groups urge India to stop irregular tax probes, saying move shakes

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Two Chinese chambers of commerce in India urged New Delhi to change its irregular tax probe practice and treat foreign investors equally, actively engender an open, fair, and non-discriminatory business environment for Chinese enterprises operating in India, as confidence by a business group that invested $3 billion and created 500,000 local jobs is shaken.

The Chinese Chamber of Commerce in India and the India China Mobile Phone Enterprise Association, in a statement sent to the Global Times on Sunday, said that Chinese mobile phone companies in India have now encountered unprecedented difficulties, and as a result of sudden inspection and fines by the Indian authorities, the companies are unable to carry out normal production and operations.

The statement came as the Indian tax authorities recently launched a large-scale investigation on Chinese-run companies in India. Leading Chinese mobile companies including Oppo, Xiaomi and OnePlus, with broad exposure in the country, were reportedly involved.

“Their confidence in developing in India is shaken. These practices are not conducive to India’s initiative on investment promotion and international economic and trade cooperation,” the statement said.

Chinese funded mobile phone enterprises have been investing significantly in India since 2015, data shows. 

There are more than 200 manufacturers and more than 500 trading companies in India as of 2021, with a total investment of more than $3 billion, with these enterprises having created more than 500,000 local jobs, according to the statement.