China’s Tax and Land Use Investigations on Apple Supplier Foxconn Raise Concerns Ahead of Taiwan’s Election

Hon Hai Foxconn Group, one of the main suppliers for Apple in the US, is reportedly facing tax and land use investigations in multiple locations in China, according to China’s state-run Global Times. The investigations have raised concerns, as they coincide with company founder Terry Gou’s announcement of his candidacy for Taiwan’s president as a non-partisan. Some analysts speculate that Beijing’s actions against Hon Hai, also known as Foxconn, are related to Taiwan’s upcoming elections and could be seen as an attempt to prevent the “blue-white alliance” between the Kuomintang and the Kuomintang Ke Wenzhe. The legislative election in Taiwan is considered to be an important battlefield, and Beijing may be taking action to ensure that the Kuomintang does not suffer a major defeat.

The tax investigation into Foxconn’s Chinese business has not yet disclosed any specific details. However, experts argue that if violations are discovered, Foxconn should admit its mistakes and make necessary corrections. Foxconn, which operates the world‘s largest iPhone production base in Henan Province, has not yet responded to the matter. The company released a statement on Sunday stating that it will cooperate with relevant units in the investigation to ensure legal operations.

Terry Gou, who resigned from Foxconn’s board of directors earlier this year after announcing his candidacy for the presidential election, has not yet commented on the investigations. Gou’s cross-strait policy is seen by some as the most acceptable to Beijing, as he has expressed acceptance of the “1992 Consensus” and proposed setting up a permanent cross-strait negotiation office in Kinmen. However, despite his stance, some believe that Beijing does not welcome Gou’s candidacy.

The upcoming presidential election in Taiwan has several major candidates, including Terry Gou, current Vice President Lai Ching-te of Taiwan’s ruling Democratic Progressive Party, and Kuomintang’s Hou Youyi. Gou currently lags behind in the polls, with about 8-10% of the vote. The election results are expected to be influential in maintaining peace and stability between China and Taiwan.