Beijing’s investigation of Foxconn may be « politically motivated ».
China is investigating Apple’s iPhone assembler Foxconn in a campaign that some have considered « politically motivated. »
Global Times, the Chinese state media outlet, reported on Sunday, citing sources, that tax authorities in the mainland were investigating Apple’s iPhone assembler Foxconn, a Taiwanese company, at their locations in Guangdong and Jiangsu provinces. The outlet reported another on-site investigation into Foxconn’s land use in Henan and Hubei provinces.
China claims Taiwan as part of its territory, but Beijing has never governed the self-administered island. In recent years, China has launched an escalating coercion campaign against Taiwan, taking the form of military drills, including a simulated blockade, ballistic missile overflights, and a rising number of warplane sorties in the skies around Taiwan.
Foxconn has said in a statement, « We will actively cooperate with the relevant authorities’ operations. »
« Complying with laws and regulations is a basic principle for the group worldwide, » Foxconn added.
Lai Ching-te, Taiwan’s vice president and the primary presidential candidate for Taiwan’s ruling Democratic Progressive Party (DPP), said on Sunday during a campaign event that Foxconn should receive support at home amid the tax investigation in China.
Lai said at the event that it’s up to the Taiwanese companies « to choose which countries they want to invest in, and regardless of where they decide to go, the government and the people (of Taiwan) should support them. »
Though the Chinese state media have downplayed the investigation’s link to Terry’s presidential election campaign, analysts in Taiwan and elsewhere believe the investigation is politically motivated.