China has opened a tax and land usage inquiry against Foxconn, according to the state media. Foxconn is the company responsible for manufacturing Apple's iPhones
The company's facilities in Guangdong and Jiangsu were inspected by tax authorities, while natural resources officials inspected facilities in Henan and Hubei. The Global Times was the first to report this, based on information from unnamed sources.
Foxconn has pledged its full cooperation with the probe. In a statement, it said, "Complying with laws and regulations is a basic principle for the group worldwide. We will actively cooperate with the relevant authorities' operations."
One expert, quoted by the Global Times, said that companies like Foxconn that get funding from Taiwan should "assume corresponding social responsibilities and play a positive role in promoting the peaceful development of cross-strait relations."
Is This Related to Foxconn Founder's Presidential Bid in Taiwan?
Foxconn founder Terry Gou is an independent presidential contender in Taiwan's upcoming 2024 January elections. As expected, this will have a major impact on Taiwan's relationship with China and the tensions in the Taiwan Strait, according to the Financial Times.
After handing over control of Foxconn to a new CEO four years ago, Gou announced his candidacy for president in early September and resigned from the board. However, he still owns 12.5% of the firm.
According to a survey done this week by one of Taiwan's prominent pollsters, Gou's support rating is only 7%, putting him considerably below the other three presidential contenders.
Although the founder has spent decades doing business in China, making Foxconn the nation's biggest private employer and exporter, he maintains that he is not acting at China's behest.
Gou remarked on August 28 when he declared his candidacy for president. "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!" He said he would not follow their directives and would not accept any kind of intimidation.
Beijing has historically targeted the local subsidiaries of Taiwanese enterprises during tense or delicate times with regulatory inquiries and political pressure. On a regular basis, Chinese authorities encourage Taiwanese businesses to aid in fostering peaceful development between the two countries.
China considers Taiwan to be an integral part of its territory and has threatened to use force to acquire the island if Taipei continues to oppose unification.
Apple Amid US-China Tech War
During this period of heightened tension between Beijing and Washington, Apple is likewise working to manage an increasingly tough relationship with China. Apple CEO Tim Cook visited China last week, where he met with Vice Premier Ding Xuexiang, the Minister of Business, and the Minister of Information Technology.
