Taiwan Vice President Criticizes China’s Probe of Foxconn
Taiwan Vice President Lai Ching-te voices concerns over China’s investigation into Foxconn
Taiwan Vice President Lai Ching-te expressed his disapproval of China’s investigation into Foxconn, a major Apple supplier. Lai emphasized that Beijing should value and support Taiwanese companies rather than exerting pressure on them, especially during an election period.
Foxconn faces tax probe
Foxconn, which has been a target of a tax investigation in China, is believed to be subjected to this scrutiny for political reasons related to the upcoming January elections in Taiwan. The company’s founder, Terry Gou, is running as an independent candidate for president, and it is suspected that the probe is a tactic to divide the opposition vote and potentially benefit Lai, who is currently leading in the polls.
Beijing’s opposition to Lai
Beijing strongly opposes Lai, accusing him of being a separatist. Lai maintains that the future of Taiwan should be determined by its people, but Beijing has rejected his offers for dialogue. The Global Times, in an article published in English, suggested that Gou’s candidacy could split the opposition vote, potentially securing a victory for Lai.
Taiwanese companies’ contributions
During a news conference in Taipei, Lai emphasized the significant contributions that Taiwanese companies have made to China’s economic development. He urged China to appreciate and support these companies, highlighting the mutually beneficial relationship between Taiwan and China.
Gou’s response and Foxconn’s statement
Gou’s campaign team refrained from commenting on the tax probe and redirected inquiries to Foxconn. They also emphasized that Gou is no longer involved in the day-to-day operations of the company. Meanwhile, Foxconn released a statement affirming its commitment to legal compliance and its willingness to cooperate with the relevant authorities.
Foxconn’s shares experienced a decline following news of the probe, dropping more than 2% during mid-morning trade, in contrast to the flat broader market. On the previous day, shares closed 2.9% lower.
In conclusion, Vice President Lai Ching-te criticizes China’s investigation into Foxconn, urging China to value and support Taiwanese companies. The probe, believed to be politically motivated, coincides with Taiwan’s upcoming elections. Taipei and Beijing maintain differing stances on the issue, with Lai advocating for the Taiwanese people’s right to determine their future. Foxconn and Gou’s campaign team have yet to provide detailed responses to the probe.
