China is looking into Foxconn, a company that manufactures iPhones in Taiwan, according to Chinese state media.
According to the Global Times, who did not reveal their names, officials checked the taxes of Foxconn companies in two provinces in China.
Foxconn will work together with the investigation.
The company is the biggest producer of iPhones for Apple and is one of the largest employers globally.
The Global Times reported that China’s department responsible for natural resources visited and inspected the land use of important Foxconn businesses in Henan and Hubei provinces.
The company Foxconn says that following the laws in every country where they operate is very important to them.
“We will work together and assist other groups in the tasks and operations,” it stated.
Terry Gou, the person who started Foxconn, is now running for president in Taiwan on his own, without the support of any political party. The election is scheduled to happen in January.
As Beijing has become more forceful in claiming power over the self-governed island, presidential candidates are sharing their different ideas on how to react.
Mr Gou has established himself as a different option compared to the current Democratic Progressive Party (DPP). He gained this position because of his many years of working in China. The DPP is viewed as unfriendly towards Beijing.
However, he said he was not afraid of China when he announced his intention to run for office. He explained that if the Chinese Communist party threatened to take away his assets from Foxconn if he didn’t obey them, he would actually welcome it.
He quit being on Foxconn’s board in September when he said he was going to run for president. He gave control of the company to someone else in 2019 when he said he wanted to be president, but he still owns 12. 5%
At that time, he belonged to a big political party in Taiwan called the Kuomintang (KMT). The KMT is known for having friendly relations with Beijing.
The Global Times said that in Taiwan, some people think that Foxconn is being looked into because its boss, Mr. Gou, is running for president.
But the government newspaper also said that Chinese experts believe the investigation is normal and legal, because all companies have to go through tax inspections.
The Global Times mentioned experts who think that the investigation might affect the elections. If the people who want Taiwan to separate from China win the elections, it would be very bad for the peace and stability of the area. Chinese people from both sides, including those in business, should join forces to avoid this disaster.
Beijing says countries can’t be friends with both China and Taiwan, so Taiwan only has a few countries it can officially be friends with. The US is Taiwan’s biggest supporter, even though it only has formal diplomatic relations with China.
Some people think that China is investigating Apple as a way to retaliate against the US for imposing sanctions on them.
Rachel Winter, an investment partner at Killik & Co, told the BBC’s Today program that it seems like this could be a response to the sanctions imposed by the US.
The US has put many restrictions on China to try and reduce their technological power, and it seems like by targeting Foxconn, they will also be hurting Apple, which is one of the most successful American companies.