China is looking into the Taiwanese iPhone manufacturer Foxconn

 China is looking into the Taiwanese iPhone manufacturer Foxconn

Foxconn, a Taiwan-based manufacturer of iPhones, is the subject of a Chinese probe, according to official media in China.

Officials allegedly performed tax checks at Foxconn firms in two Chinese regions, according to The Global Times, which cited unnamed sources.

Foxconn declares that it will assist with the inquiry.

One of the greatest employers in the world, the firm is the main producer of iPhones for US tech giant Apple.

The Natural Resources Department of China reportedly conducted on-site examinations into the usage of land by significant Foxconn enterprises in the provinces of Henan and Hubei, according to The Global Times.

In a statement, Hon Hai Technology Group (Foxconn) said that "Legal compliance anywhere we operate around the world is the core value of Hon Hai Technology Group."

"We will actively cooperate with an appropriate divisions on the related work and operations," said the statement.

Terry Gou, the creator of Foxconn, is a contender in Taiwan's upcoming January presidential election as an independent.

Given that tensions between Taiwan and China have risen over the last year, it is anticipated that the election will have a substantial impact on that relationship.

The presidential contenders have outlined their various plans for how to react as Beijing's claims over the self-governing island have become more adamant.

Based on his years of labor experience in China, Mr. Gou has positioned oneself as an alternative to the ruling Democratic Progressive Party (DPP), which is seen as antagonistic to Beijing.

But when he declared his candidacy, he said that he was not afraid of China: "If the Chinese Communist party regime were to threaten to seize your assets from Foxconn if you don't listen to me, I would say "Yes, please, do it!" "

After declaring his candidacy for president in September, he gave up his position on the board of Foxconn. When he declared his first candidacy for president in 2019, he turned up control of the business but kept a 12.5% ownership share in Foxconn.

At the time, he belonged to the Kuomintang (KMT), a significant political party in Taiwan that is seen as being sympathetic to Beijing.

According to The Global Times, "many people" in Taiwan believe Foxconn is under investigation as a result of Mr. Gou's presidential campaign.

A Chinese expert's statement that the probe "is normal and legitimate, as any company goes through tax inspections," was included in the state-run daily.

Experts were also quoted by The Global Times as saying that the investigation may have an impact on the elections and that "if separatists who seek 'Taiwan independence' win the forthcoming elections, that would be a huge disaster to the overall stability and peace of the region, as well as the Chinese people of both sides of the Taiwan Straits, which include the ones in the business circle, should work together in order to prevent disaster from happening."

Beijing is adamant that countries cannot have formal diplomatic links with both China and Taiwan, hence Taiwan only has a small number of countries. Despite just having diplomatic ties with China, the US continues to be Taiwan's most vital ally.

Others contend that China is using the inquiry to retaliate against the US for its sanctions by focusing on one of its largest corporations, Apple.

According to Rachel Winter, investment director at Killik & Co., "it does feel like this might be something of a retaliation to the US sanctions."

"The US has imposed a lot of measures on China to try and limit its technological abilities and it certainly feel that by going after Foxconn that they are going to be harming Apple which is one of those US's most successful companies."