Indian income tax authorities have raided several branches of Chinese telecom equipment maker Huawei as part of a tax investigation. The searches were carried out at Huawei offices in New Delhi, Gurugram and the IT capital Bengaluru. Government officials reviewed financial records, books of accounts, Huawei’s Indian operations and overseas transactions. Earlier this week, the Indian government banned 54 mobile apps of Chinese origin.
Previous searches by Directorate of Law Enforcement
In addition, the Law Enforcement Branch had also conducted raids before and froze the assets of Chinese-controlled companies and non-banking financial firms offering instant loans to Indians through mobile apps. On the other hand, Huawei said, “We have been informed about the visit of (the) income tax team to our office and also their meeting with some staff. Huawei is confident that our operations in India are firmly in compliance with all laws and regulations. . We will approach relevant government departments for more information and cooperate fully in accordance with rules and regulations,” WION reported.
Growing tensions between India and China
India is home to the world’s second largest market for mobile phone users. Therefore, the government had previously justified banning the 54 candidacies as a threat to national sovereignty and the nation’s integrity. Last year, India overlooked Huawei when it appointed foreign network equipment vendors to conduct 5G trials. Tensions between the two countries have escalated since the Galwan Valley clash in 2020. Since then, anti-China sentiment in India has grown and there have been demands to boycott goods from neighboring countries.
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