A report claiming that Foxconn (2317. TW), a key supplier of Apple’s (AAPL.O) iPhones, is the target of tax audits and land use investigations in China, caused shares of the Taiwanese business to fall as much as 3% on Monday.
According to China’s state-backed Global Times, the Natural Resources Department of China has also launched on-site investigations into the land usage of Foxconn firms in the provinces of Henan and Hubei, among others. It also claimed that several of Foxconn’s important subsidiaries in China are the subject of tax audits.
In a statement released on Sunday, Foxconn stated that upholding the law was a “fundamental principle” of all business activities and that it would “actively cooperate with the relevant units on the related work and operations.”
On Monday, it declined to speak further. Foxconn employs roughly 200,000 workers in its Zhengzhou facility in the Henan region, where it produces the majority of iPhones. However, it also has smaller production facilities in southern China and India. The Global Times omitted information on the tax and land usage investigations, which any branch of the Chinese government has not publicly disclosed.
Taiwan’s presidential and legislative elections will take place in less than three months. Terry Gou, the wealthy founder of Foxconn who resigned as company chief in 2019 and no longer participates in day-to-day operations, is running as an independent candidate despite trailing in the polls.
He has claimed that only with his significant professional and personal relationships in China and the United States can they keep the peace after the island’s dominant Democratic Progressive Party brought the island to the verge of conflict with China through its antagonistic policies.
Comment Template