China Investigates Apple Supplier Foxconn Amid Founder's Taiwan Presidential Bid

Investigation of Foxconn includes key subsidiaries in the Guangdong and Jiangsu provinces and comes amidst company's diversification efforts away from China mainland, sparking claims of Beijing's political motives amid founder Terry Gou's contentious independent run for Taiwan's presidency.

China is investigating Apple's iPhone assembler Foxconn over tax matters and land use in several provinces; the company is accused of diversifying operations away from the Chinese mainland, with some speculating that the probe may be politically motivated due to the upcoming presidential race in Taiwan.
Foxconn's founder, Terry Gou, who previously split from the Kuomintang Party after failing to secure a nomination, is now running as an independent candidate for Taiwan's presidency, a move that analysts believe could challenge unity within the party and potentially lead to its defeat in the upcoming elections.
Taiwan's vice president, Lai Ching-te, has emphasized that Taiwanese companies have the right to invest in whichever country they choose, and that the government and people should support them regardless of their choice. He has expressed that Foxconn should receive support at home amid the tax investigation in China.
Experts have suggested that China may be seeking to support the Kuomintang Party by investigating Foxconn. This is based on the view that a success for the party in the upcoming elections could lead to improved cross-Strait trade and relationships with China, which Beijing would consider a positive outcome.
Regardless of the investigation, Foxconn maintains its commitment to complying with laws and regulations worldwide and has expressed its willingness to cooperate with the relevant authorities. However, this news has caused a significant drop in the company's stocks.