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New Delhi’s monetary enforcement company has arrested an worker of Chinese cell phone firm vivo, reigniting fears of a renewed crackdown on Chinese corporations working in India.

The in a single day arrest comes greater than a yr after India’s Enforcement Directorate, which investigates monetary crimes, raided vivo properties to probe claims of illegally remittance of funds from India to China, which the directorate stated was equal to almost half the corporate’s Rs1.2tn (£11.7bn) turnover.

India and China’s diplomatic relations have been tense since lethal clashes between troopers alongside the Himalayan border in 2020 and, whereas commerce has continued, India has retaliated economically by banning scores of Chinese apps from its market, together with video app TikTok.

An Indian authorities official stated the Enforcement Directorate had arrested 4 folks linked to vivo, together with a Chinese nationwide. Another individual with data of the matter stated one Chinese nationwide was amongst these arrested. The Enforcement Directorate has not publicly commented.

Vivo stated one among its staff had been arrested, with out elaborating on their nationality. “The recent arrest deeply concerns us,” it stated an announcement to the FT. “We will exercise all available legal options”. Vivo added that it “firmly adheres to its ethical principles and remains dedicated to legal compliance”.

No details about the character of expenses has been made public.

Indian state businesses have additionally focused Chinese cell phone corporations Oppo and Xiaomi up to now 18 months. They froze virtually $700mn of Xiaomi’s property. The Directorate of Revenue Intelligence, the tax enforcement company, last year accused vivo of customs evasion. Vivo stated on the time it was co-operating with authorities.

The raids led China’s embassy in New Delhi to complain that “frequent investigations by the Indian side into Chinese enterprises” was disrupting enterprise.

Vivo, owned by BBK Electronics, is vying with Samsung for the most important share of India’s cell phone market, in accordance with analysis agency Canalys. Vivo has grown its share in current quarters at the same time as gross sales have been sluggish.

Earlier this month, New Delhi police raided the properties of greater than 40 reporters and different employees working at NewsClick, a information web site which Indian officers stated has carried Chinese propaganda.