China probes Apple supplier Foxconn over taxes and land use
Chinese authorities are inspecting Foxconn offices in Henan and Hubei provinces, state media reports
22 October 2023 - 19:21
byEthan Wang and Bernard Orr
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A woman walks past the logo of Foxconn outside the company's building in Taipei, Taiwan, November 9 2022. Picture: ANN WANG/REUTERS
Beijing — Taiwan’s Foxconn, the largest supplier of Apple iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday.
China’s natural resources department also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere, nationalist tabloid the Global Times reported. It did not elaborate on the investigations or the timing of them.
“Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn),” the company said in a statement, without addressing the allegations. “We will actively co-operate with the relevant units on the related work and operations.”
Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations.
“Foxconn’s subsidiaries are obliged to actively co-operate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification,” Zhang said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
China probes Apple supplier Foxconn over taxes and land use
Chinese authorities are inspecting Foxconn offices in Henan and Hubei provinces, state media reports
Beijing — Taiwan’s Foxconn, the largest supplier of Apple iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday.
China’s natural resources department also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere, nationalist tabloid the Global Times reported. It did not elaborate on the investigations or the timing of them.
“Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn),” the company said in a statement, without addressing the allegations. “We will actively co-operate with the relevant units on the related work and operations.”
Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations.
“Foxconn’s subsidiaries are obliged to actively co-operate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification,” Zhang said.
Reuters
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