Taiwan-based Foxconn faces intense Chinese regulatory scrutiny
BEIJING, CHINA — Chinese authorities are investigating Foxconn’s operations, a Taiwanese electronics conglomerate also known as Hon Hai Precision Industry, focusing particularly on tax compliance and land use at its Chinese facilities.
These investigations are unfolding against rising tension between China and Taiwan and increased scrutiny of Taiwanese enterprises operating in mainland China.
Reports from the Global Times, a Communist Party-affiliated news outlet, reveal that the tax audits target Foxconn’s principal enterprises in Guangdong and Jiangsu provinces.
Concurrently, the Ministry of Natural Resources examines land use practices at Foxconn locations in Henan and Hubei provinces. Notably, Henan province houses Foxconn’s primary iPhone manufacturing hub.
In response, Foxconn has publicly reiterated its dedication to adhering to legal standards worldwide, assuring full cooperation with the Chinese investigations.
“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,” the firm stated.
Analysts suggest that these investigations could be a tactical maneuver by China, potentially influencing the Taiwanese presidential election scheduled for January 2024.
The current frontrunner, Taiwanese Vice President William Lai of the Democratic Progressive Party, is anticipated to continue the incumbent administration’s hardline approach toward China.
The scrutiny of Foxconn, a prominent Taiwanese corporation with extensive operations in China, could be part of a broader strategy to sway policy decisions in Taiwan. This political landscape is further complicated by the presidential candidacy of Foxconn’s founder, Terry Gou.
