Apple iPhone assembly partner Foxconn has gotten on the wrong side of the Chinese government, as the firm faces investigations into its business by China’s tax authorities.
The investigations, which Foxconn says it will cooperate fully with, come as Foxconn has been making moves to move away from China, and Foxconn’s founder, Terry Gou, is running for president of Taiwan.
The Global Times reports that Chinese authorities have been conducting inspections of Foxconn premises. Despite Gou resigning from Foxconn, the publication cites sources saying the inspections are normal and legitimate but may impact the forthcoming elections.
The publication says that Chinese mainland tax authorities have been conducting inspections of Foxconn in at least its Guangdong and Jiangsu provinces.
Meanwhile, the country’s natural resources department has been conducting an on-site visit of Foxconn’s facilities in Henan and Hubei provinces.
According to a statement seen by CNBC, Foxconn has said it will cooperate fully.
“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,” the company said in a statement on Sunday.
(Via AppleInsider)
