Title: Foxconn Faces Tax Audits and Land Use Investigations in China
Subtitle: Apple’s major supplier under scrutiny for possible violations of laws and regulations
Date: October 22, 2022
Beijing – Foxconn Technology Group, the largest supplier of iPhones to Apple Inc., has come under the radar of Chinese authorities as tax audits and on-site investigations related to land use are being conducted at some of its key subsidiaries. These actions are prompted by suspicions of potential violations of laws and regulations, according to Chinese state media reports on Sunday.
In an exclusive article published by the nationalist tabloid, the Global Times, it was revealed that China’s natural resources department has initiated investigations into Foxconn’s operations in Henan and Hubei provinces, as well as other locations. The report did not provide further details about the nature of these investigations or their timing.
Foxconn, known for its prominent presence in the technology manufacturing industry, has not yet responded to requests for comment outside of regular business hours.
Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, offered insight into the situation. In an interview with the Global Times, he stated that tax audits and land use investigations are standard procedures conducted by relevant departments when there are suspicions of violations of laws and regulations. He emphasized that Foxconn’s subsidiaries should fully cooperate with these audits and investigations. If any violations are discovered, the company should acknowledge its mistakes, accept penalties, and take appropriate measures to rectify the issues.
The outcome of these investigations could have significant implications for Foxconn’s relationship with Apple and its overall business operations. As Apple’s largest supplier, any disruptions or penalties faced by Foxconn could potentially impact the supply chain and production of iPhones.
Further updates on the situation are yet to be announced. Ethan Wang and Bernard Orr contributed to this report, and Lincoln Feast provided the editing.
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Note: This news article follows the Thomson Reuters Trust Principles.