Hon Hai Group’s headquarters, in Taipei, Taiwan, 15 July 2021.
Ceng Shou Yi | Nurphoto | Getty Images
Apple supplier Foxconn, officially referred to as Hon Hai, said it will cooperate with Chinese authorities on investigations, following a report that officials are conducting tax audit inspections and reviewing land use of Foxconn subsidiaries.
State media Global Times reported on Sunday, citing unnamed sources, that multiple offices of Hon Hai’s subsidiaries across China had been subjected to tax audits and on-site investigations into land use. The report didn’t elaborate on the investigations.
Hon Hai Technology Group is the world’s largest contract electronics manufacturer. The corporate assembles consumer products like Apple’s iPhones.
“Legal compliance in every single place we operate all over the world is a fundamental principle of Hon Hai Technology Group (Foxconn). We will actively cooperate with the relevant units on the related work and operations,” the corporate said in an announcement on Sunday.
Hon Hai’s Taipei-listed shares fell 3.29% in early Monday morning trade.
Hon Hai share performance
The investigations come as Foxconn founder Terry Gou bids to grow to be Taiwan’s next president. Beijing claims that the self-governed island is a component of its territory.
In August, Gou announced that he was entering Taiwan’s 2024 presidential elections as an independent candidate after again failing to secure the nomination for the principal opposition Kuomintang party earlier this yr. He dropped a previous presidential bid in 2019 after the KMT chosen a special candidate as its nominee.
Gou stepped down as Foxconn chief in 2019 and resigned as an organization board member in September.