The logo of Foxconn is pictured on a building in Taipei, Taiwan, Oct. 23. EPA-Yonhap
Chinese mainland tax authorities have conducted tax inspections on key enterprises of Foxconn in Guangdong and Jiangsu provinces, among other places, in accordance with the law. The natural resources department has also conducted on-site investigations into the land use of key enterprises of Foxconn in Henan and Hubei provinces, the Global Times has learned exclusively from sources on Sunday.
Foxconn is a Taiwan-headquartered company known globally for making Apple products including iPhones. The company’s founder, Terry Gou, announced in August that he would be running as a candidate in the 2024 elections of Taiwan’s regional leader. He then resigned from his seat on the board of Foxconn.
Analysts from both sides of the Taiwan Straits said that although Gou shows similar political stance with Kuomintang (KMT), the main opposition party in the island, his act of running for the elections is likely to further divide the island’s opposition camp, and this will in the end favor secessionist ruling Democratic Progressive Party’s candidate Lai Ching-te.
Many within the island suspect that the reason why Foxconn is being investigated is because Gou’s running for the elections, but Chinese mainland experts said the investigation is normal and legitimate, as any company goes through tax inspections.
The investigation is normal, but it may impact the elections, said experts, noting that if the secessionists who seek “Taiwan independence” win the elections, that would be a huge disaster to the peace and stability of the region, and the Chinese people of both sides of the Taiwan Straits, including the ones in the business circle, should work together to prevent disaster from happening.
According to media reports, a spokesperson from the Hon Hai Technology Group told the Taiwan Stock Exchange Corporation that compliance with the law and regulations is the fundamental principle for the group operating worldwide, and it will actively cooperate with relevant departments in their inspections.
Former Foxconn Founder Terry Gou gestures during a press conference in Taipei, Aug. 28, AFP-Yonhap
A normal act
Conducting tax inspections and investigating land use situations of domestic enterprises in China are normal market supervision activities, which are reasonable and legal. Enterprises of Foxconn have the obligation to cooperate and jointly maintain market order, and should be ready to correct their mistakes if any violations are found, Zhang Wensheng, deputy dean of the Taiwan Research Institute at Xiamen University, told the Global Times.
Zhang noted that the mainland has always welcomed Taiwan-funded enterprises to invest in the mainland and protected their legal interests. In recent years, relevant departments have provided preferential measures to Taiwan-funded enterprises, encouraging them to share the mainland’s development opportunities. Enterprises from the island that have come to invest and establish factories in the mainland have indeed enjoyed the dividends of peaceful development.
As a leading company from Taiwan, Foxconn has achieved significant profits and expanded its presence in the mainland. Its subsidiary, Foxconn Industrial Internet Co Ltd, has been listed on the A-share market, contributing to its parent company, Hon Hai Technology Group, said Zhang.
Experts said the share prices of Hon Hai and Foxconn on the stock markets will likely to be impacted, and this proves that the cross-Straits cooperation is close and Taiwan companies should pay serious attention to the relevant laws and regulations of the mainland.
The expert noted that companies from the island, including Foxconn, should not only benefit from the development opportunities and dividends in the mainland but also shoulder corresponding social responsibilities. They should actively contribute to promoting peaceful cross-Straits relations and play a positive role in their continuous development.
Chairman of Hon Hai Technology Group (FOXCONN) Young Liu speaks at Hon Hai Technology Day (HHTD23) in Taipei, Taiwan, Oct. 18. EPA-Yonhap
Say no to secessionism
The concern toward Taiwan secessionism around the world is rising, including among major Western powers like the U.S. and the EU. Laura Rosenberger, chair of the American Institute in Taiwan (AIT), on Thursday told the media during her recent trip in Taiwan that the U.S. does not support “Taiwan independence,” prompting the media and observers within the island to say Washington is being suspicious over the DPP’s candidate Lai.
High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell published a piece on the European External Action Service (EEAS) website Friday, stating that the EU’s “One China Policy” remains unchanged and that “Taiwan should not embark on any unilateral declaration of independence.”
The U.S. and the EU are now facing rising pressures from both the Middle East and Europe, due to the worsening situation in Gaza caused by the Palestine-Israel conflict, as well as the ongoing Ukraine crisis. So the major Western powers really don’t want to see any uncertainty and troublemaker that would cause a new conflict in the Asian-Pacific region, especially in the Taiwan Straits, but the U.S. will keep using the island of Taiwan as a pawn to contain the mainland, said analysts.
Hou Yu-ih, candidate of the KMT for the Taiwan regional leader election in 2024, said on Saturday during a campaign activity at Taoyuan, Taiwan, that “we cannot allow the worker of ‘Taiwan independence’ gets elected!” He was referring to Lai, the DPP’s candidate, who’s also the deputy leader of the Taiwan region, and who once called himself a “pragmatic worker of ‘Taiwan independence.'”
Han Kuo-yu, former candidate of the KMT during the 2020 election of Taiwan regional leader, said at the event that the election in 2024 will be a campaign of “war vs peace.”
This article was originally published on Global Times.
