iPhone maker Foxconn subjected to tax inspections by Chinese authorities

Apple iPhone maker Foxconn was subjected to searches by Chinese tax authorities, state media reported on Sunday (Oct 22). According to a report by the Global Times, tax authorities searched Foxconn's offices in Guangdong and Jiangsu provinces. The ministry of natural resources also inspected Foxconn's offices in Henan and Hubei provinces, where it has major offices.

Foxconn is a Taiwanese-headquartered company officially registered as Hon Hai Precision Industry Co., Ltd. Foxconn does the vast majority of its manufacturing in China, and employs hundreds of thousands of workers across the country.

More details about the searches were not known including when they were carried out or what was found. However, an expert told state media while Taiwan-funded enterprises, including Foxconn, were sharing in dividends from "development and making remarkable progress in the mainland, they should also assume corresponding social responsibilities and play a positive role in promoting the peaceful development of cross-strait relations.”

In a statement, Foxconn said, "Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group."

"We will actively cooperate with the relevant units on the related work and operations," the statement added.

The searches come amid the ongoing strained relations between China and Taiwan. China claims the democratic self-governing island of Taiwan as part of its own territory.

The Chinese military regularly flies fighter jets and bombers near Taiwan to enforce its stance that the island is obliged to unite with the mainland, by force if necessary.

The strained relations have also spilled over to the economic realm with China banning pineapples, grouper fish, and other agricultural products from Taiwan for import. But Beijing has largely refrained from targeting Taiwanese companies that operate on the mainland.

In August, Foxconn's founder Terry Gou that he would be a frontrunner in next year's Taiwan presidential elections. He then resigned from his seat on the board of Foxconn.

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