Friday, December 1, 2023

China is thoroughly investigating the plants that Taiwan’s largest company has on its territory

Foxconn is one of the biggest companies on the planet. This Taiwanese company currently produces around 40% of the electronic devices on the market and works with more than 1.2 million people. It was founded in 1974 by Taiwanese businessman Terry Gou and in just five decades it has gone from relying on the work of a few people to establishing itself as the titan it is today.

Their list of clients is endless. It produces electronic devices for Apple and Huawei, but also Sony, Amazon, Dell, HP, Nintendo, Microsoft IBM, and other companies. Its success is based on its large production capacity thanks to an infrastructure of highly specialized assembly plants spread throughout Asia, America, and Europe.

Foxconn’s factories in China play a fundamental role in its business because of their size and production capacity. The largest of the thirteen plants in this country live and work in Shenzhen with more than 400,000 workers. However, these facilities are a real headache for Gou and his colleagues, and the vision is getting worse and worse.

From the employee deficit to the Chinese Government’s suspicions and investigations

In the last part of last year, Foxconn’s income fell 29% because it could not provide an effective response to the needs of the largest customer. This is because the general entrenchment strategy imposed by the Chinese Government to prevent the spread of the disease COVID-19 prompted an exodus of employees from which it has not yet recovered.

Chinese organizations responsible for taxation and natural resource management are involved in this investigation.

Now he just stumbled again. AManyreliable Chinese media, including the Global Times and South China Morning Post, have confirmed that the Chinese Government launched an investigation so ambitious that it led him to inspect Foxconn’s factories in the Chinese provinces of Guangdong, Jiangsu, Henan ,and Hubei.

So far it has not emerged what exactly the Chinese Government is looking for or what its suspicions are, although we know that the organizations responsible for taxation and management of natural resources are involved in this investigation, which allows us to create an accurate idea. about the scope of this procedure.

Many experts in Asia defend that this step of the Chinese Administration is legitimate and completely normal, but in the current state of tension between China and Taiwan ,it is inevitable to suspect the scope of this investigation. hide something else. Terry Gou, the CEO of Foxconn, announced at the end of August that he will run as a candidate in the elections to be held in Taiwan in 2024.

In a clear attempt to normalize what happened, Foxconn spokesmen stated just a few hours ago that they will cooperate with the Chinese authorities because for them compliance with the law is a fundamental principle  On the other hand, a current has emerged in Taiwan that argues that the underlying reason behind this investigation is, precisely, Gou’s candidacy. One thing we can be sure of: this approach will affect the election, although it is too early to say in what way.

World Nation News Desk
World Nation News Desk
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