TAIPEI: After Chinese authorities launched a probe into tech giant Foxconn, the vice president of the island warned on Tuesday( Oct 24) that economic powerhouse Taiwanese companies based in China may be forced to relocate if they feel” unjustly pressured.”
According to China’s state-run Global Times on Sunday, the Taiwanese business, one of the largest deal producers of electronics and a major supplier of Apple iPhones, is being investigated for tax and land in several Chinese provinces.
It made no mention of any possible offenses that Foxconn might include committed or the investigations that the government are conducting.
Without providing any additional information, the company stated on Sunday that it would work with appropriate authorities” for the procedures concerned.”
As Taiwan, which Beijing claims as its place and has vowed to strike one day, gets ready for national elections in January, the investigation is being conducted.
Taiwanese businesses may leave mainland China if they feel” unjustly pressured ,” according to Vice President Lai Ching-te, the current election frontrunner and leader of the Democratic Progressive Party ( DPP ).
At a press conference, he stated that” if they become afraid and cowardly and lose faith in China, they may gradually move their foundations to other countries.”
Lai remarked,” That would be a big loss for China.”
Every day there is an election, he advises China to” value and value” Taiwanese companies rather than pressuring them to declare allegiance or even help particular candidates.
Foxconn, also known as Hon Hai Precision Industry, employs more than a million people across the country and is the largest private-sector firm in China.
Terry Gou, the company’s businessman founder, who took over management responsibilities four years ago, is already running as a long-shot independent candidate in the January elections.
Hou Yu-ih of the Kuomintang party, the main opponent, and Ko Wen-je from the tiny Taiwan People’s Party are the other candidates for president.
Former Taipei city mayor Ko stated on Tuesday that the Foxconn investigation reflects Taiwan’s situation as a” world orphan” brought on by deteriorating cross-strait relations with China.
At a lecture with foreign press in Taipei, he stated that” the biggest trouble… is that the Chinese government has no way to communicate with China on behalf of Taiwan’s businesses.”
Since President Tsai Ing-wen was elected in 2016, Beijing has severed ties with her state and intensified military, political, and economic pressures on the island. Beijing despises her for refusing to acknowledge that Taiwan is Chinese territory.