Apple Supplier Foxconn to Cooperate with Chinese Authorities on Investigations
Apple supplier Foxconn, officially known as Hon Hai, has announced that it will cooperate with Chinese authorities in ongoing investigations. This follows a report stating that Chinese officials are conducting tax audits and reviewing land use of Foxconn subsidiaries. The report, published by state media Global Times, did not provide further details on the investigations.
Hon Hai Technology Group, the world’s largest contract electronics manufacturer, assembles consumer products such as Apple’s iPhones.
In a statement on Sunday, the company said, “Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn). We will actively cooperate with the relevant units on the related work and operations.”
Following this news, Hon Hai’s Taipei-listed shares fell 3.29% in early Monday morning trade.
Foxconn Founder Terry Gou’s Presidential Bid and Beijing’s Claims
Hon Hai share performance
These investigations coincide with Foxconn founder Terry Gou’s bid to become Taiwan’s next president. Beijing claims that the self-governed island is part of its territory.
In August, Gou announced his candidacy as an independent candidate for Taiwan’s 2024 presidential elections, after failing to secure the nomination for the main opposition Kuomintang party earlier this year. He had previously dropped a presidential bid in 2019 when the KMT selected a different nominee.
Gou stepped down as Foxconn chief in 2019 and resigned as a company board member in September.
