Apple supplier Foxconn under investigation in China for tax evasion and land use violation

Foxconn Technology Group, the world’s largest electronics contract manufacturer, is currently facing scrutiny in mainland China. Chinese authorities have initiated tax and land use investigations at multiple Foxconn sites, according to state media reports released on Sunday.

The investigations are currently underway at Foxconn facilities situated in southern Guangdong province and Jiangsu in the east. Simultaneously, authorities are conducting on-site inquiries into the company’s land use in central Hunan and Hubei provinces, as reported by China’s state-run Global Times.

The reasons for these investigations and any potential offences by Foxconn have not been explicitly mentioned in the newspaper report. In response to these inquiries, Foxconn, also known as Hon Hai Precision Industry, issued a statement on Sunday, emphasizing the importance of adhering to the law as a fundamental principle for their global operations. The company expressed its commitment to actively cooperate with the relevant authorities involved, albeit without divulging further details.

It’s worth noting that Foxconn is a key supplier for Apple’s iPhone and is the largest private-sector employer in mainland China, with a workforce exceeding one million employees nationwide.

These investigations have come to light approximately two and a half months ahead of the presidential elections in Taiwan, a self-governing territory claimed by China as its own. Foxconn’s founder, billionaire Terry Gou Tai-ming, who is no longer affiliated with the company, is focusing on a somewhat challenging bid to run as an independent candidate in Taiwan’s presidential elections scheduled for January 2024. Gou, aged 72, previously failed to secure the nomination of the opposition Kuomintang party in 2019, and analysts believe his chances of winning the upcoming election are relatively slim.

Critics have raised concerns about Gou’s allegedly close ties with mainland Chinese leadership. In response, Gou has stated that he aims to foster peace between Taipei and Beijing.

(With input from agencies)