Multiple investigations by Indian enforcement agencies into Chinese companies are damaging the confidence of foreign entities investing and operating in the country, China's embassy in the South Asian nation has said.

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Many Chinese firms have struggled to do business in India after political tension surged following a border clash in 2020. India has cited security concerns in banning more than 300 Chinese apps since, and toughened rules on Chinese investment.

Wednesday's (Jul 6) comments by the embassy follow raids this week by a financial crime fighting agency, the Enforcement Directorate, targeting smartphone maker Vivo, owned by China's BBK Electronics, in a money laundering investigation.

Such frequent investigation "impedes the improvement of business environment in India and chills the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India", the embassy said in a statement.

Raids were conducted at 44 production and operation sites of Vivo and related entities across India, and China was closely following progress, it added.

This week Vivo said it was cooperating with authorities and was committed to full compliance with Indian laws.

Spokespersons for the Indian agency and the government did not immediately respond to requests for comment.