Apple iPhone-maker Foxconn's facilities under investigation in China

Foxconn, a Taiwan-based company known for manufacturing Apple products including iPhones, is currently under investigation by mainland Chinese tax authorities. According to Chinese state media, Global Times, the investigation is focusing on Foxconn's key enterprises in Guangdong and Jiangsu provinces. Additionally, the natural resources department is investigating the land use of Foxconn's key enterprises in Henan and Hubei provinces.

The founder of Foxconn, Terry Gou, announced in August that he would be running as a candidate in the 2024 elections for Taiwan's regional leader. This has led to speculation that the investigation into Foxconn may be related to Gou's political ambitions. However, according to the report, by Global Times, mainland Chinese experts have stated that the investigation is a normal part of business operations and all companies undergo tax inspections.

Foxconn has stated that it will cooperate with relevant departments during their inspections and that compliance with laws and regulations is a fundamental principle for its global operations.

The company said, "Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn). We will actively cooperate with the relevant units on the related work and operations."

Given the tense geopolitical situation around Taiwan, the election could have an impact on Taiwan’s relationship with China. According to report by BBC, Mr Gou has openly said he is not scared of China when he announced his candidacy. The report quotes a statement he made while announcing his candidacy. He said, "If the Chinese Communist party regime were to say 'If you don't listen to me, I'll confiscate your assets from Foxconn,' I would say 'Yes, please, do it!'

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