China Tightens Up on Foxconn, The Maker of iPhone

Nov 29, 2023 - Views: 176

Rating:4.9 - 50Votes

Chinese tax officials punished a Foxconn Technology Group subsidiary in Wuhan 20,000 yuan ($2,800) for exaggerating costs.

The Foxconn Industrial Internet Co. business was hit with this fine because, according to the state-run National Center for Public Credit Information, there were inconsistencies in the way it recorded its R&D expenditures for the years 2021 and 2022.

Inquiries from Bloomberg News were not immediately answered by Foxconn's representative, despite efforts to do so.

China intensifies crackdown on iPhone maker Foxconn

China intensifies crackdown on iPhone maker Foxconn

The fine is a part of a larger probe by Beijing into the tax matters of the iPhone manufacturer in the southern provinces of Jiangsu and Guangdong, as well as into land usage in Hubei and Henan, which are the locations where most iPhones are produced.

Interestingly, Wuhan was not specifically mentioned as a subject of the tax inquiry in the report released in October.

This development aligns with Terry Gou, the founder of Foxconn, who is a candidate in the forthcoming January presidential election in Taiwan.

Doubting the Chinese government's ability to interfere with his commercial empire, Gou had declared that it would not be impacted.

Although the billionaire is still actively involved in the election, his campaign efforts have decreased since the revelation of these investigations.

China specifically opposes his candidacy because they believe he might divide the opposition's support. He promised to make sure Taiwan did not turn into "the next Ukraine" throughout his campaign.

Nestled on the verge of two lakh workers, Foxconn Industrial Internet (FII) is a significant contract company in China that supplies Foxconn with products.

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Rating:4.9 - 50Votes

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