Hon Hai Precision Industry Co., a major assembler of iPhones, has announced its collaboration with Chinese authorities for ongoing investigations. This comes in response to reports suggesting that tax audits and land use assessments are being conducted on its parent company, Foxconn Technology Group Co.
According to the state-run Global Times, tax authorities are currently examining Foxconn subsidiaries in Guangdong and Jiangsu provinces. Furthermore, officials from the natural resources department are investigating the company’s land use in Henan and Hubei provinces. However, the report does not provide any specific details regarding these investigations.
In a filing with Taiwan’s stock exchange, Hon Hai did not reveal any further specifics related to the probes and tax checks. It is worth noting that Foxconn’s renowned Zhengzhou plant, referred to as “iPhone City,” is situated in Henan.
In an unrelated development, Terry Gou, the billionaire founder of Foxconn, recently resigned from the company’s board as he vies for the presidency of Taiwan. When questioned about his vulnerability to Chinese pressure in the event of a victory in January’s election, Gou dismissed the claims, stating, “I will not bow to China’s threats.” He emphasized the disruption to global supply chains, affecting key customers such as Apple, Tesla, and Amazon, should production be halted due to political pressure.
Taiwan’s vice president and current frontrunner in the presidential election, Lai Ching-te, expressed support for Hon Hai during a campaign event. He urged China not to demand Taiwanese companies to declare their political stance during elections, emphasizing their significant contribution to China’s economy.
Meanwhile, Taiwan’s Ministry of Economic Affairs affirmed that it will maintain close communication with Hon Hai and provide necessary assistance if required.
Overall, as Hon Hai collaborates with Chinese authorities and navigates these investigations, the company remains focused on its operations and continued contributions to the global supply chain.
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