courtesy: reuters
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China has launched an investigation in iPhone manufacturer Foxconn over tax and land use, as reported by the local meida on Sunday.
The Global Times, citing anonymous sources said that Foxconn sites were inspected by tax authorities in the provinces of Guangdong and Jiangsu and natural resources officials had inspected sites in Hubei and Henan.
Foxconn said that it will cooperate with the investigating agencies as complying with laws and regulations is a basic principle for the group worldwide.
Founder Terry Gou is running as an independent candidate in Taiwan’s presidential election in January, a contest that will have a significant influence on the country’s relations with China and the tensions in Taiwan Strait.
Gou, who handed over the company to his successor chief executive four years ago, resigned from his seat on the board in September. He still hold 12.5 per cent stake in the company.
Beijing has history of targeting local subsidiaries of Taiwanese companies with regulatory probes and political pressure at sensitive tense times.
China has claimed that Taiwan is a part of its territory and would take the island by force, if Taipei refuses unification. The People’s Liberation Army is continuosly stepping up moves to probe the airspace and water near Taiwan.