Chinese authorities have launched an investigation into Foxconn, the world’s largest iPhone maker and Apple supplier. The company is audited by the country’s tax and environmental authorities.
According to the Chinese newspaper Global Times, the Chinese Fiscal Service carried out an audit of Foxconn subsidiaries in Guangdong and Jiangsu provinces. Natural resources authorities inspected the company’s factories in Henan and Hubei provinces.
The publication does not specify the reasons for the investigation or other details of the inspections. At the same time, the Global Times quotes a comment by Zhang Wensheng, vice dean of the Taiwan Research Institute of Xiamen University.
The specialist pointed out that audits and investigations in the field of land use are a common procedure that would be applied to any company suspected of violating the country’s laws.
“Compliance with the law everywhere we operate in the world is a fundamental principle of Hai Technology Group (Foxconn),” Reuters quotes a statement from Foxconn’s press service. “We will actively cooperate with relevant authorities on necessary matters and operations.”
As Bloomberg highlights, the largest iPhone factory, operated by Foxconn, is located in the city of Zhengzhou, Henan province. The agency attributes the reasons for the investigation to the political activities of the group’s founder, Terry Gou.
In August, the billionaire announced his candidacy for the presidency of Taiwan and in September he left the Foxconn board of directors due to the launch of the campaign.
The businessman stated that “he will not submit to China’s threats” and that China will have to explain to the entire world if the cessation of production due to political pressure causes interruptions in supply to the company’s main customers, such as Apple, Tesla and Amazon.
Photo: Photo Nature Trips / Shutterstock
Author:
Akhmed Sadulayev
Source: RB
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