It was initiated by the Chinese authorities
China has launched an investigation into iPhone maker Foxconn over taxes and land use, the Financial Times reported, citing Chinese state media.
The Global Times, citing anonymous sources, said tax authorities were inspecting Foxconn facilities in Guangdong and Jiangsu provinces, while natural resources officials were inspecting facilities in Henan and Hubei.
Foxconn said it would cooperate with the investigation: “Compliance with laws and regulations is a core principle of the group around the world. We will actively cooperate with the relevant authorities.”
The Global Times article quoted an expert as saying, “Taiwan-funded enterprises, including Foxconn, should also shoulder corresponding social responsibilities and play a positive role in promoting the peaceful development of cross-strait relations.”
The iPhone manufacturer became a defendant in the investigation
In the past, Beijing has targeted local subsidiaries of Taiwanese companies through regulatory investigations and political pressure. Chinese officials often call on Taiwanese companies to promote “peaceful development” between the two sides.
Apple is trying to navigate a rocky relationship with China at a time of tension between Beijing and Washington. Last week, Apple Chief Executive Tim Cook traveled to China and met with members of Xi Jinping’s leadership team, including Vice Premier Ding Xuexiang and China’s ministers of commerce and information technology.
Chinese government departments and state-owned enterprises have banned or discouraged employees from using Apple devices in recent months. In September, Beijing warned of “security incidents” related to the iPhone.
