Apple Supplier Foxconn to Work With China on Unspecified Probes

Key iPhone assembler Hon Hai Precision Industry Co. said it will collaborate with Chinese authorities on unspecified probes, following a report that officials are conducting tax audits and reviewing land use by parent Foxconn Technology Group Co.

Tax authorities are conducting checks on Foxconn subsidiaries in Guangdong and Jiangsu provinces. (Reuters)

Key iPhone assembler Hon Hai Precision Industry Co. said it will collaborate with Chinese authorities on unspecified probes, following a report that officials are conducting tax audits and reviewing land use by parent Foxconn Technology Group Co. 

Tax authorities are conducting checks on Foxconn subsidiaries in Guangdong and Jiangsu provinces, the state-run Global Times said Sunday, citing unidentified people with knowledge of the matter. The report also said natural resources officials are looking into the company's use of land in Henan and Hubei provinces.

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No further details of the investigations and tax checks were provided in Global Times' report. Hon Hai didn't give specifics either in a filing with Taiwan's stock exchange. Foxconn's Zhengzhou plant, known as iPhone City, is located in Henan.

Foxconn billionaire founder Terry Gou resigned from the company's board last month as he campaigns to become president of Taiwan. The campaign referred questions to Foxconn. 

He previously dismissed claims he would be susceptible to Chinese pressure, were he to win January's election. 

“I will not bow to China's threats,” Gou said at the August briefing announcing his presidential bid. Name-checking key customers including Apple Inc., Tesla Inc. and Amazon.com Inc., he said any halt to production due to political pressure would disrupt supply chains — something China would need to explain to the world.

Lai Ching-te, Taiwan's vice president and presidential election frontrunner, voiced support for Hon Hai at a campaign event Sunday. 

“China shouldn't force Taiwanese companies to declare their position whenever an election is taking place,” he said. “China should acknowledge Taiwanese companies contribute to its economy greatly.”

United Daily News reported that Taiwan's Ministry of Economic Affairs said it will keep in close contact with Hon Hai and provide assistance if needed.

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