BANGKOK (AP) — Foxconn, a Fortune 500 company known worldwide for making the Apple iPhone, recently came under investigation by Chinese tax authorities, local reports said Sunday.
Foxconn, A Taiwanese – The headquarters company, officially registered as Hon Hai Precision Industry Co., Ltd, has had its offices searched by tax officials in Guangdong and Jiangsu provinces, according to a report in the Chinese state-run Global Times newspaper.
The Ministry of Natural Resources also visited Foxconn offices in Henan and Hubei provinces, where the company has large factories. Foxconn employs tens of thousands of workers across China.
The report did not provide further details about the searches, when they occurred or what was found.
It also quoted an expert who said that “while Taiwan-funded enterprises, including Foxconn, are sharing in the gains from development and making significant progress on the mainland, they should also assume social responsibility and play a positive role in promoting peaceful development. Cross-strait relations.”
Tensions between China and Taiwan have been high in recent years. China claims the democratically autonomous island of Taiwan as part of its territory. The two sides split after a civil war in 1949 and have no official ties but are linked by billions of dollars. Trade and Investment.
The Chinese Communist Party regularly flies fighter planes and bombers to Taiwan to enforce its position that the island must be united with the mainland. Uses force if necessary.
Tensions have sometimes spilled over into the economic sphere. In recent years, China has banned imports of pineapples, grouper fish and other agricultural products from Taiwan.
However, it largely refrained from targeting Taiwanese companies operating on the mainland.
Foxconn does most of its manufacturing in China. The agency said in a statement Sunday evening that it would “actively cooperate with relevant units on related tasks and operations.”
The company’s founder, Terry Gow, was announced in August That he will run as a candidate in Taiwan’s presidential election, which will be held early next year. He then resigned his seat on Foxconn’s board.
Gou is seen as a China-friendly candidate whose politics mostly align with the island’s current opposition party, the Kuomintang.