Foxconn faces searches by tax officers in China; says will 'actively cooperate' with authorities

'Complying with laws and regulations is a basic principle for the group worldwide'

foxconn chagres china Representational image | Reuters

Taiwanese-headquartered Foxconn, a major assembler of Apple iPhones, which faced searches by Chinese tax authorities recently, said it is willing to cooperate with the authorities on unspecified probes.

"Complying with laws and regulations is a basic principle for the group worldwide," Foxconn said in a statement, reported Financial Times. "We will actively cooperate with the relevant authorities' operations," the company further said.

The offices of Foxconn in Guangdong and Jiangsu provinces were searched by tax officials, according to a report in the Chinese state-run Global Times newspaper. Foxconn offices in Henan and Hubei provinces, where the company has major factories, were also inspected by the ministry of natural resources.

While the report did not provide more details about the searches, including when they occurred or what was found, it quoted an expert who said while Taiwan-funded enterprises, including Foxconn, are 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.

The recent years have seen an increase in tensions between China and Taiwan, with the former claiming that the democratic self-governing island of Taiwan is part of its own territory. The sides split in 1949 after a civil war and have no official relations but are linked by billions of dollars in trade and investment.

Foxconn does the vast majority of its manufacturing in China.

Foxconn founder, Terry Gou, recently announced that he would be contesting in Taiwan's presidential elections, which will be held early next year. He is seen as a China-friendly candidate whose politics mostly align with the Kuomingtang, the island's current opposition party.


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