Shillong, October 23: The Chinese government has reportedly launched an investigation into Foxconn, the manufacturer for Apple, focusing on matters related to tax and land use.
According to state-run media outlet the Global Times, Chinese tax authorities have conducted inspections on key Foxconn enterprises in Guangdong and Jiangsu provinces, among other locations. Additionally, the natural resources department has carried out on-site investigations into land use by Foxconn in Henan and Hubei provinces.
This probe into Foxconn coincides with its founder Terry Gou’s independent bid for the Taiwan presidential election in January 2024. Gou has resigned from his position on the board of Foxconn due to his political aspirations.
Although Gou aligns with the Kuomintang (KMT), the primary opposition party in Taiwan, analysts suggest that his presidential run may further divide the opposition camp, ultimately benefiting the candidate from the ruling Democratic Progressive Party.
Foxconn is reportedly under investigation because of Gou’s political activities, but mainland Chinese experts argue that such investigations are routine and legitimate, as any company can be subject to tax inspections.
A spokesperson from the Hon Hai Technology Group, which owns Foxconn, emphasized their commitment to complying with laws and regulations and expressed their readiness to cooperate with the relevant authorities.
Foxconn, a major player in manufacturing, has experienced substantial profits and expansion in mainland China. Its subsidiary, Foxconn Industrial Internet Co Ltd, is listed on the A-share market, contributing to the parent company’s growth.
Terry Gou, the 72-year-old tech billionaire, has ambitious plans for Taiwan’s future, aiming to surpass Singapore’s GDP per capita in Asia within 20 years.
Established in 1974, Foxconn has grown into an international business empire, becoming the largest private employer and exporter in mainland China with a workforce of 1.2 million.