As we all know, Chinese mobile phone companies dominate the Indian market, with more than 70% of the market share occupied by Chinese brands. However, India has been trying to develop its own brand of mobile phones, but it has made little progress and it is difficult to compete with Chinese brands. As a result, India has started targeting Chinese mobile phone manufacturers and trying to profit from them. In recent years, India has used various pretexts to investigate these Chinese brands and impose penalties on companies such as Xiaomi, Huawei, Oppo, OnePlus and Vivo. For example, Xiaomi was previously fined more than 500 million rupees and subsequently froze 48500 million yuan. Although Xiaomi unfroze the funds through its efforts, the problem is far from solved. In addition to Xiaomi, OPPO and Vivo have not been spared, and India has fined them for tax evasion. Considering that OPPO and Vivo are also selling quite a lot in India, the Indian authorities certainly want to profit from this. However, recently India said that the money laundering investigation into Vivo has been closed, and they accused Vivo of transferring 6247 overseas through illegal meansINR 600 crore funding. And this money accounts for 12,518 of vivo's total sales in IndiaHalf of Rs 500 crore, which means that half of vivo's income evades tax and only half of its income is taxed. So, how does vivo evade taxes?India said four individuals (who had been arrested by India) had set up 23 shell companies in India, and Vivo worked with the four individuals to use the 23 companies to move funds offshore. However, the four people vehemently denied the allegations, saying that they had considered setting up a joint venture with vivo in 2014, but ultimately did not cooperate, and that the two parties had no contact since 2014 and there was no money laundering. At present, India has only charged vivo with money laundering, and it is expected that the Indian authorities will impose a fine on vivo next, and the amount of the fine may not be low. After all, the funds involved are as high as 53.7 billion yuan, and the amount of fines may reach hundreds of millions, or even billions. However, the real act of money laundering is still the justification for fines in IndiaWe have no way of knowing. However, judging from the current situation, the Indian market is a risky market for mobile phone manufacturers, and it may be difficult to make money in India and return to China. Therefore, mobile phone manufacturers should remain cautious.
Chinese mobile phone companies occupy an absolute advantage in the Indian market, with more than 70% of the market share occupied by Chinese brands. However, India has been hoping to cultivate local mobile phone brands, but the realization of this goal has encountered setbacks, and the development of India's own brand mobile phones has been slow, making it difficult to compete with Chinese brands. To this end, India** began to investigate Chinese mobile phone manufacturers on various grounds and tried to punish them. In recent years, Chinese brands such as Xiaomi, Huawei, OPPO, OnePlus and Vivo have all been targeted by India, and have been investigated and punished. Xiaomi, for example, was fined more than Rs 500 million and frozen500 million yuan. Although Xiaomi unfroze the funds through its efforts, the problem was not completely solved. Oppo and vivo, the most important brands, have not been spared, and India** has fined them for tax evasion. Considering that OPPO and vivo also have very high sales in the Indian market, India** certainly wants to get a profit from it.
Now, the Indian authorities have once again taken aim at Vivo and are investigating it for money laundering. According to India, vivo laundered money through illegal means, bringing 6247600 million Indian rupees (about 63.7 billion yuan) of funds were transferred abroad. This money accounts for half of vivo's total turnover in the Indian market over the years, which means that half of vivo's income evades taxes, and only half of its income is taxed. In order to achieve the purpose of money laundering, according to India, four people set up 23 shell companies in India and cooperated with vivo to use these companies to transfer funds abroad. However, the four people strongly refuted the allegations, saying that they had considered forming a joint venture with vivo in 2014, but ultimately failed to cooperate, and that there had been no contact between the two parties since 2014 and there was no money laundering.
At the moment, the Indian authorities have only accused Vivo of money laundering, and the next step is likely to impose a fine on it. Considering that the amount of money involved is as high as $53.7 billion, the fine amount could be quite substantial, potentially reaching hundreds of millions of rupees or even billions. However, it is impossible to tell whether these allegations are true, whether they are real money laundering, or if they are excuses made by India** for the purpose of fines. However, judging from the current situation, the Indian market is a risky market for mobile phone manufacturers. Mobile phone manufacturers may face huge difficulties if they want to make money in the Indian market and return to China, so they must be cautious. India-related issues have also raised questions about the Indian market, whether this market is a drug market, and whether it is a dangerous sea of suffering for mobile phone manufacturers, which is worth thinking deeply.
Chinese mobile phone brands dominate the Indian market, which has also doubled India's interest in it, hoping to profit from it through various means. In recent years, India has launched a number of investigations and penalties against Chinese mobile phone brands, involving huge amounts of money. However, we need to look at these accusations and penalties objectively and not dismiss them blankly as India** looking for excuses for the sake of profit. As a self-editor, I believe that we should maintain a neutral and objective attitude towards such incidents, and cannot blindly support or oppose them. However, we also need to pay attention to the challenges and pressures of the Indian market on Chinese mobile phone brands, and how to operate in such a market is a problem that every mobile phone manufacturer needs to seriously think about and deal with. In addition, we should also learn from the lessons and enhance our understanding of the international market and the risks** to ensure that companies can survive in the global competition.