China Investigates Foxconn Over Potentially Politically Motivated Land Use Amid Founder's Presidential Campaign in Taiwan

Investigation Seen as Beijing's Attempt to Influence Taiwanese Presidential Race, With Potential Impact on Nation's Economy Amidst Slow Growth and COVID-19 Challenges

China has launched investigations into Taiwan's Foxconn over its land use in mainland China. Foxconn is a key Apple supplier and China's largest private-sector employer, contributing significantly to China's employment and economic growth.
The investigation is perceived as politically motivated because its announcement comes just about 11 weeks before Taiwan's presidential elections. Terry Gou, Foxconn's billionaire founder, is one of the candidates running for the presidency.
Experts suggest that Beijing may prefer a win for the current ruling Democratic Progressive Party (DPP), viewing Gou's candidacy as a potential splitting of the opposition vote. Gou is running as an independent candidate.
The investigation comes as Foxconn begins to expand some of its supply chains outside China. This move might also be a factor in the inquiry, seen as Beijing expressing its displeasure over this corporate decision, causing external investors to be concerned.
Analysts suggest that Beijing is willing to sacrifice parts of its economy for political reasons. With China's economy already struggling to recover after continuous COVID-19 lockdowns and facing significant headwinds from a property crisis and high youth unemployment, this is a notable shift over the past few years.