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Over the years, the development of Foxconn (Hon Hai Precision) in Chinese mainland has brought significant contributions and far-reaching impact on China's economy. The well-known Taiwanese company's presence in China not only provides employment opportunities for millions of Chinese residents, but also boosts the development of China's manufacturing industry and global export trade.
However, just recently, the mainland tax department launched an investigation into Foxconn's taxes and other situations in some places, which made many people feel incredible.
Combined with the recent election in Taiwan, this news immediately attracted widespread attention from many media.
Foxconn was investigated
Some time ago this year, Foxconn was investigated by the relevant departments in the mainland and fell into some crises, which is an attitude and a crisis for this huge enterprise.
Foxconn is a world-renowned electronics manufacturing company headquartered in Taiwan, they manufacture many different kinds of electronic devices, such as mobile phones, computers, and other electronic gadgets.
If you see an electronic device that says "Designed by Apple in California, Assembled in China," it's likely Foxconn.
This company is very famous in China because they have many factories in China and provide jobs to a lot of people. Not only do they manufacture in China, they also have factories in other countries, so they can send their products all over the world.
Despite their size, they have also caused controversy over the working conditions of their employees, but they have been improving, improving their treatment and making the working environment better.
Overall, Foxconn is a very influential company in the field of electronics manufacturing, has made great contributions to the development of China's economy, and also plays an important role in the global electronics industry.
An electronic component manufacturing company
Foxconn's official response was to actively cooperate with the relevant investigations in the mainland, and on October 23, the day after the Global Times report was released, many subsidiaries of Hon Hai Precision (commonly known as Foxconn) were hit by the decline in stock prices, and Hon Hai Precision's own stock fell more than 3% within 5 minutes of opening.
Foxconn is a world-renowned Taiwanese electronics manufacturing company, headquartered in Taiwan, the company has been rooted in China for many years, famous for manufacturing electronic devices and components, providing production services for many well-known brands such as Apple, HP, Dell, etc.
Due to its size, it is also widely regarded as one of the largest electronics manufacturing services companies in the world.
Foxconn's factories in China are located in multiple cities, making a significant contribution to the Chinese economy and job market, and these factories play an important role in manufacturing a variety of electronic products, including smartphones, tablets, laptops, TVs, and more.
A recent Chinese investigation of Foxconn to check its tax and land-use compliance has attracted a lot of attention because Foxconn's business in China is so big, it is the world's largest electronics foundry, it has hundreds of thousands of employees in China, and a whole host of suppliers rely on it.
If the investigation affects Foxconn's production capacity and operations in China, it may affect many companies that do business with it, and the product supply of these large customers may also be affected.
Many people are speculating whether this move indicates an attitude on the mainland, and this speculation is indeed common in today's increasingly tense relations between the mainland and Taiwan and the United States.
However, we need to know that although Foxconn is a company in Taiwan Province, it has a large-scale manufacturing base in China, which makes a positive contribution to the Chinese economy and job market. Therefore, it is also reasonable and legal for China to conduct inspections in accordance with its own laws.
Time touches the sensitive nerves of some people
However, Taiwanese leader candidate Lai Qingde expressed regret that Foxconn was taxed by the mainland, pointing out that Taiwanese companies have not only promoted the rapid development of the mainland's economy in the past few decades, but also created a large number of jobs.
Lai Qingde believes that all kinds of investigative pressure should not be exerted on Taiwan enterprises just because the election of leaders on the island is approaching, and he stressed that if the mainland continues to adopt this method, it may eventually lead to both defeats, and Taiwan enterprises should be cherished and protected.
It is also worth noting that Lai's remarks have raised doubts among some because he is the candidate of the Democratic Progressive Party, whose position within Taiwan is generally considered pro-American and pro-Japanese. This has also sparked some speculation that his speech may be directional.
Lai stressed that Taiwanese enterprises have made great contributions to the Chinese mainland's economic development and job creation in the past few decades. Such statements may help bolster his campaign profile and emphasize the positive role of his economic policies in promoting cross-strait relations and Taiwan's economy.
However, it is likely that his speech was strategic in an attempt to win voter support.
At this time, the candidate's remarks are usually widely concerned and interpreted, and Lai Qingde, as a representative of the DPP, his remarks may be influenced by the position and policy direction of the party he represents.
As a result, it is often examined whether his statements are in line with the interests and ideals of the party he represents.
Former chairman Terry Gou did not respond
Gou's reaction was different from Lai's, prompting some speculation and analysis.
Gou, a former candidate of the Kuomintang, made a number of remarks a few years ago that made his stand firm, pledging to sacrifice his personal property to resist mainland reunification.
However, this time, he chose to remain silent about the Foxconn tax audit.
They said that Guo stepped down as the boss of the Hon Hai Group four years ago and handed over all the management of the company to others, and he has not interfered in any of the group's affairs in recent years.
There is a view that the mainland's investigation of Taiwan companies may be related to Mr. Gou's fiery remarks four years ago, in which Mr. Gou promised to sacrifice all his property to oppose Taiwan's return.
However, this statement led to a sharp decline in Hon Hai Precision stock, and although the company issued a message clarifying that Gou had not been involved in the company's management for four years, it did not stop the stock price from falling.
In the end, Hon Hai Group had to make an announcement that narrowly reversed the downward trend of the stock.
Just this year, he resigned as chairman of Hon Hai, so now he has nothing to do with Hon Hai and Foxconn, so he does not comment on this tax investigation.
Guo is running for Taiwan's leader, and now that Hon Hai is being examined, it will involve him to some extent, so he first stated that he had cut off relations with the group long ago, so as not to affect his election.
However, Hon Hai and Foxconn must still have some influence since his founding, and this China inspection has also reminded him that he needs to carefully deal with cross-strait relations and be cautious in his words and actions.
Gou's position is somewhat related to the KMT, but the KMT is currently closer to the mainland, so it remains to be seen whether Gou's choice to remain silent is also a strategy.
In general, Foxconn's tax audit by the mainland has triggered different reactions from different figures, and these reactions also reflect the complexity of Taiwan's internal and external patterns.
Different attitudes reflect complexity
In general, Foxconn's tax audit by the mainland has triggered different reactions from different figures, and these reactions also reflect part of the complexity.
For Foxconn itself, the tax investigation could have some impact on its operations and reputation, after all, it is a globally watched company that has a particularly prominent position in China's manufacturing sector.
How Foxconn will respond to the survey, as well as changes in the economy and environment inside and outside China, will be the focus of close attention from industry and politics.
At the same time, Taiwanese companies operating in the Chinese market also need to comply with Chinese laws and regulations to maintain legal compliance.
This incident is also a reminder that not only for Foxconn, but also for other Taiwanese companies, operating legally and compliantly is the key to success in the Chinese market.
In the end, how to balance cross-strait relations, promote economic cooperation, and maintain stability will be an important issue in the future relations between Taiwan and its relations with the mainland, and it will also require deep consideration and joint efforts by leaders and ordinary voters.