Michelle ThompsonAccording to Chinese state media, China has initiated an inquiry into Foxconn, the iPhone manufacturer based in Taiwan, as reported on Sunday.
China’s authorities, as reported by The Global Times and citing undisclosed sources, have carried out tax inspections at Foxconn facilities in two Chinese provinces. Foxconn, also known as Hon Hai Precision Industry Co Ltd, is the largest producer of iPhones and one of the world’s largest employers. Additionally, China’s natural resources department has conducted on-site investigations into land usage by major Foxconn businesses in Henan and Hubei provinces.
In response, Foxconn has expressed its commitment to adhering to legal compliance in all of its global operations and has stated its willingness to cooperate with the relevant units in this investigation.
It’s worth noting that Foxconn’s founder, Terry Gou, is running as an independent candidate in Taiwan’s upcoming presidential election, scheduled for January. This election is expected to significantly impact Taiwan’s relationship with China, considering the heightened tensions between the two entities in recent times. Various presidential candidates have presented differing visions on how to handle these tensions. Gou, drawing on his extensive experience working in China, has positioned himself as an alternative to the incumbent Democratic Progressive Party (DPP), which is often viewed as being at odds with Beijing. Despite these tensions, Gou has asserted that he is not intimidated by China, even suggesting he would willingly part with Foxconn’s assets if Beijing demanded it.
Terry Gou, upon announcing his candidacy for the presidential race, resigned from his position on Foxconn’s board in September. He had already handed over the company’s management in 2019 when he initially ran for the presidency, though he still holds a 12.5% stake in Foxconn. At that time, he was a member of the Kuomintang (KMT), a major political party in Taiwan often seen as being friendly toward Beijing.
The Global Times reported that there is suspicion among many in Taiwan that Foxconn is under investigation due to Mr. Gou’s presidential campaign. Nevertheless, the state-run newspaper emphasized that Chinese experts view the investigation as a routine and legitimate tax inspection, something that any company may undergo.
The Global Times also cited experts who believed that this investigation might impact the elections. They expressed concerns about the potential election of candidates advocating for “Taiwan independence” and its consequences on regional peace and stability. These experts emphasized the need for cooperation among people from both sides of the Taiwan Straits, including those in the business sector, to prevent such a disaster.
It’s important to note that Beijing maintains the stance that countries cannot have official relations with both China and Taiwan. As a result, Taiwan has formal diplomatic ties with only a few nations. The United States, while it officially recognizes China, remains a crucial ally for Taiwan.
