China inspects the Taiwanese tech giant. There will be trouble
Beijing is scrutinizing the Taiwanese company Foxconn. Chinese officials are conducting inspections related to taxes and land issues. The Taiwanese-origin company is a global giant producing components for the world's largest technology corporations.
Oct 22, 2023 | updated: 3:08 AM EDT, October 23, 2023
Trouble for the Taiwanese giant. Foxconn, a manufacturer of components for iPhones and PlayStations, is being targeted by the Chinese tax authorities - reports Reuters. The audit is expected to involve suspicions of violating statutory and executive regulations of subsidiary companies.
Foxconn in the crosshairs of Beijing
Moreover, as Reuters reports — the Chinese Department of Natural Resources conducted an investigation into land use by Foxconn in Henan and Hubei provinces, as well as in other locations,
Compliance with the law everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn) - we read in a statement from the Taiwanese company quoted by the agency.
Zhang Wensheng, the deputy dean of the Taiwanese Research Institute of Xiamen University, told Chinese media that the audit and investigation into land usage is a normal procedure that applies to any company suspected of violating statutory and executive regulations - reports Reuters.
Zhang also added that Foxconn's subsidiaries in China are obliged to actively cooperate in audits and investigations, and if there indeed was a violation of laws and regulations, they should admit their mistakes and accept penalties as well as accelerate corrective actions.
