China opens investigation into Taiwanese Apple partner Foxconn, possibly politically motivated

Chinese authorities have launched an investigation into Taiwan’s Foxconn, Apple’s main partner and one of the largest employers in China. Chinese state media and Taiwanese newspapers reported this last weekend. Foxconn, which makes the vast majority of Apple’s iPhones at factories in China, said it would cooperate with the investigation.

In the investigation, Chinese tax authorities are conducting audits of Foxconn subsidiaries in Guangdong and Jiangsu provinces, the Chinese state newspaper reported Global Times Sunday. Natural resources officials are also investigating Foxconn’s use of land in Henan and Hubei provinces. According to Taiwanese media, the Chinese offices of Foxconn, which is called ‘Hon Han’ in Taiwan, have already been searched by Chinese officials.

Further details about the investigations and tax audits are not known – Foxconn also did not provide further details.

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A ‘Godroom’ in every factory – how iPhone maker Foxconn controls the global electronics market

Foxconn presented electric models during the <strong>Hon Hai Tech Day</strong>.” class=”dmt-article-suggestion__image” src=”https://images.nrc.nl/tHbTw9yEsCmykIDH3_8MUeMlOUE=/160×96/smart/filters:no_upscale()/s3/static.nrc.nl/bvhw/files/2022/11/data92662770-22bdc5.jpg”/></p><p>China often does not publicly explain the actions of its regulators, leaving companies with operations in the country often guessing at the government’s ultimate motives.  Given the enormous power of the Communist Party, this opaque approach has made foreign companies reluctant.  Last summer, US Commerce Secretary Gina Raimondo said during a visit to China that companies are finding it increasingly difficult and risky to invest in the country due to unpredictable government regulations.</p><h2 class=Elections

Reuters news agency spoke to two anonymous sources around Foxconn who suspect that the tax investigation is politically motivated. In a few months, Taiwan will hold national elections. The most important election theme is the relationship that the island maintains with the Chinese mainland. China views the island of Taiwan as a renegade province that it wants to re-annex. The current Taiwanese ruling party DPP is pursuing an independent course from China.

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IT billionaire Terry Gou wants to become president of Taiwan

Terry Gou, the founder of Foxconn, resigned as chairman of the company. He is now participating in the elections as the figurehead of an independent party. He previously made a vain attempt to become party leader of the nationalist Kuo MinTang, the Taiwanese party that takes a more pro-China position.

Gou, 73, believes he can improve Sino-Taiwanese relations thanks to his experience as an entrepreneur. “Give me four years and I will ensure fifty years of peace in the Taiwan Strait,” promised he in August, at the start of his campaign. But his participation in the elections fragments the votes and increases the chances for the DPP.

Billionaire Terry Gou amassed his wealth mainly through the expansion of large assembly factories in China, which employ hundreds of thousands of people. Foxconn’s Zhengzhou factory, also known as iPhone City, is located in Henan province, China. (ANP/NRC)

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