The probe into the Taiwanese iPhone maker comes less than three months before Taiwan's presidential election and as Foxconn seeks to expand production outside China.
ADVERTISEMENTElectronics giant Foxconn, known worldwide for making Apple iPhones, is facing probes in China over suspected tax regulation violations, state-run media reported on Sunday.
Tax officials raided the Taiwanese company's offices in the Chinese provinces of Guangdong and Jiangsu, according to the Global Times, a daily tabloid under the auspices of the Chinese Communist Party's flagship newspaper.
The Ministry of Natural Resources also inspected offices in Henan and Hubei provinces, where the company has major factories.
According to Reuters, two sources close to Foxconn said several firms had been audited by Chinese authorities in recent months, but only the electronics manufacturer's probe was made public for political reasons.
The sources highlighted the audits come less than three months ahead of Taiwan's presidential election and amid Foxconn's drive to expand production outside China.
The company's founder, Terry Gou, announced in August that he would run to be Taiwan's president. He then resigned from his seat on the board of Foxconn.
Gou is seen as a China-friendly candidate whose politics mostly align with the island's current opposition party, Kuomingtang, which strongly objects to Taiwan's independence.
However, citing unnamed experts, the Global Times said Gou's "act of running for the elections is likely to further divide the island's opposition camp, which will in the end favour secessionist ruling Democratic Progressive Party's candidate Lai Ching-te."
The tabloid did not provide more details about the searches, including when they occurred or what was found.
Foxconn said in a statement on Sunday evening that it will “actively cooperate with the relevant units on the related work and operations.”
The company does the vast majority of its manufacturing in China, employing hundreds of thousands of people.
China and Taiwan strongly linked by economic ties
Tensions have been high between China and Taiwan in recent years, as Beijing claims the democratic self-governing island as part of its own territory.
The sides split in 1949 after a civil war. The Chinese Communist Party regularly flies fighter planes and bombers near Taiwan to enforce its stance that the island is obliged to unite with the mainland, by force if necessary.
The two territories have no official relations but are linked by billions of dollars in trade and investment. China is Taiwan's largest trading partner, making the island's economy highly dependent on Beijing.
In spite of having banned the import of pineapples, grouper fish and other agricultural products from Taiwan, Beijing has largely refrained from targeting island businesses that operate in China.
