Foxconn to Collaborate With China on Investigations
Hon Hai Precision Industry Co., the main assembler of iPhones, has announced its intention to cooperate with Chinese authorities in ongoing investigations. This comes after reports emerged that officials are currently conducting tax audits and examining land usage by its parent company, Foxconn Technology Group Co.
Tax authorities are conducting inspections at Foxconn subsidiaries in Guangdong and Jiangsu provinces, the state-run Global Times reported on Sunday, citing unidentified people with knowledge of the matter. According to the report, natural resources authorities are investigating the company’s land use in Henan and Hubei provinces.
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The Global Times report did not elaborate on the investigations and tax audits. Hon Hai also did not provide more detailed information in the application made to the Taiwan Stock Exchange. Foxconn’s Zhengzhou factory, known as iPhone City, is located in Henan.
Foxconn billionaire founder Terry Gou resigned from the company’s board last month while campaigning for Taiwan’s presidency. The campaign forwarded questions to Foxconn.
He previously denied claims that he would be vulnerable to pressure from China if he won the January election.
“I will not bow to China’s threats,” Gou said at a news conference in August announcing his presidential bid. Name-checking customers such as Apple Inc., Tesla Inc. and Amazon.com Inc., he said halting production due to political pressure would disrupt supply chains — something China would have to explain to the world.
Taiwan’s Vice President and presidential front-runner Lai Ching-te voiced her support for Hon Hai at a campaign event on Sunday.
“China should not force Taiwanese companies to declare their position every time there is an election,” he said. “China should recognize that Taiwanese companies make a significant contribution to its economy.”
The United Daily News reported that Taiwan’s Ministry of Economy said it was in close contact with Hon Hai and would assist if needed.
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