Hon Hai Precision Industry, a key assembler of iPhones, has announced that it will cooperate with Chinese authorities in ongoing investigations. The move comes after reports claimed that tax audits and land use reviews are being conducted by officials at parent company Foxconn Technology Group.
The state-run Global Times reported on Sunday that tax authorities are currently checking Foxconn subsidiaries in Guangdong and Jiangsu provinces. Additionally, the report revealed that natural resources officials are examining the company’s land usage in Henan and Hubei provinces. However, no further details regarding the investigations and tax checks were provided in the report.
In response to the news, Hon Hai did not disclose any specifics in its filing with Taiwan’s stock exchange. Notably, Foxconn’s major iPhone production plant, known as iPhone City, is situated in Henan province. It is worth mentioning that Foxconn’s founder Terry Gou recently resigned from the company’s board as he campaigns to become the President of Taiwan. For inquiries related to the investigations, Gou referred the questions to Foxconn.
Earlier, Gou dismissed the notion that he would be influenced by Chinese pressure if he were to win the January election. During his presidential bid announcement in August, he confidently stated, “I will not bow to China’s threats.” He also emphasized the potential disruption to global supply chains, including those of Apple, Tesla, and Amazon, if production were to be halted due to political pressure.
Meanwhile, Lai Ching-te, Taiwan’s Vice President and a frontrunner in the upcoming presidential election, expressed support for Hon Hai during a recent campaign event. Lai stated that China should refrain from forcing Taiwanese companies to declare their position during elections and instead recognize the significant contributions made by these companies to its economy.
In response to the reports, Taiwan’s Ministry of Economic Affairs assured that it will maintain close contact with Hon Hai and offer assistance if necessary. This news emphasizes the importance of the ongoing investigations and their potential implications for Foxconn and its subsidiaries.
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