Top Apple iPhone supplier Foxconn is reportedly under a tax probe from Beijing.
The move comes as the head of the Taiwan-based company just announced his decision to run for President of Taiwan.
At the same time, Taiwan’s Vice President—also a front-runner in the island’s presidential race—is calling on Beijing to “cherish” Taiwanese companies.
“This is behavior where both sides can only lose,” Lai Ching-Te, Taiwan’s Vice President, said.
Lai’s comment comes as another presidential candidate is urging China to clarify what its tax investigation is really about.
“China claims to be a world power. Regarding a matter such as this one, it should come out and explain itself. Are they specifically targeting Foxconn or are they generally investigating certain companies? They should explain this,” Ko Wen-Je, Former Taipei Mayor, said.
Most of Foxconn’s factories are based in China.
An expert from Taiwan told NTD that he believes Beijing’s probe ties into politics and that the Chinese regime is trying to pressure Foxconn founder Terry Guo into quitting the race for Taiwan’s next president.
“The Chinese Communist Party wan ts Gou to withdraw from the election, or they want him to accept their integration arrangements (with mainland China),” Lee Youtan, Professor, Institute of Nat’l Development, National Taiwan University, said.
“Not just [Terry Guo], but this is the case for almost all Taiwanese businessmen, and even for all foreign businessmen. If you have benefited from China, you cannot criticize China,” Huang Pengxiao, Senior Political and Military Commentator, Taiwan, said.
According to Lee Youtan, the Chinese communist regime closely monitors Taiwanese presidential elections, aiming to manipulate the island’s election results.
The Chinese Regime claims Taiwan as its own territory, despite never having ruled the island.
It has vowed to annex Taiwan, by force if necessary.