Foxconn, a key supplier of iPhone parts, is under investigation by the Chinese government. The purported reason is due to tax fraud, but there is more to this story.
Foxconn is a Taiwanese company which has led the industry in electronics components. The NY Times says:
Foreign and local companies in China are increasingly the targets of tax audits and other regulatory reviews, as local governments try to steady their finances by collecting more revenue.
The latest company to come under scrutiny is Foxconn of Taiwan. Chinese state media outlets reported on Sunday that the company was facing investigations in four provinces.
Beyond being a Taiwanese company, Foxconn’s leader is running for the Presidency of Taiwan. China’s investigation now looks like foreign influence in the Taiwanese election. The BBC continues:
Foxconn’s founder Terry Gou is running as an independent candidate in Taiwan’s presidential election that is due to take place in January.
The election is expected to have a significant influence on Taiwan’s relationship with China given tensions between them have ratcheted up in the past year. As Beijing’s claims over the self-governed island have grown more assertive, presidential candidates have pitched their differing visions on how to respond.
Taiwan is feeling military pressure from China, which has been increasing its maritime and air patrols in the region. With the United States stretched thin across the globe, Taiwan is at risk of a Chinese attack.
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