China Intensifies Crackdown On iPhone Maker Foxconn As Its Founder Champions Anti-CCP Cause In Run For Taiwan Presidency

A Foxconn Technology Group subsidiary in the central Chinese city of Wuhan has been fined 20,000 yuan ($2,800) by Chinese tax authorities for inflating expenses, Business Standard reported.

This penalty was imposed on the Foxconn Industrial Internet Co. unit due to discrepancies in its accounting of research and development expenses during the years 2021 and 2022, as reported by the state-run National Center for Public Credit Information.

Despite attempts to obtain a comment from Foxconn's representative, there was no immediate response to inquiries from Bloomberg News.

The fine is part of a broader investigation by Beijing into the tax affairs of the iPhone maker in the southern provinces of Guangdong and Jiangsu, as well as into land use in Hubei and Henan—regions where the majority of iPhones are manufactured.

Notably, the October report on the investigation did not mention Wuhan as a specific area covered by the tax probe.

This development coincides with the presidential ambitions of Foxconn founder Terry Gou, who is currently running in Taiwan's upcoming presidential election in January.

Gou, confident in the resilience of his business empire, had asserted that the Chinese government would not dare to interfere with it.

However, his campaign activities have diminished following the announcement of these investigations, although the billionaire remains an active participant in the race.

Notably, China doesn't want him to contest as he can split the opposition vote. During his campaign, he pledged to ensure that Taiwn did not become "the next Ukraine"

Foxconn Industrial Internet (FII) serves as a major contract manufacturer for Foxconn in China, boasting nearly 2 lakh employees, according to its website.