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China on Monday urged India to provide a fair, just, transparent and non-discriminatory business environment for its companies after two employees working for Chinese smartphone vendor Vivo's India unit were reportedly arrested by India's Enforcement Directorate.

"We are closely following what you mentioned," Foreign Ministry spokeswoman Mao Ning said when asked about the arrest at a regular news briefing in Beijing.

Mao said that the Chinese embassy and consulates in India would continue to provide consular protection and assistance to the individuals concerned in accordance with the law.

Noting that the Chinese government firmly supports Chinese businesses in safeguarding their lawful rights and interests, the spokeswoman said it is hoped that India will fully recognize the mutually beneficial nature of its business cooperation with China and provide a fair, just, transparent and non-discriminatory business environment.

According to media reports, the Vivo employees will appear in court on Tuesday.

Vivo's India unit said that it was deeply shocked by the arrest. "The recent arrests demonstrate continued harassment and as such induce an environment of uncertainty amongst the wider industry landscape. We are resolute in using all legal avenues to address and challenge these accusations," said a Vivo spokesperson.