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Apple supplier Foxconn faces tax audit, land use probe - Chinese state media
BEIJING : Taiwan's Foxconn, the largest supplier of Apple iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday.
China's natural resources department also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere, the nationalist tabloid the Global Times reported.
It did not elaborate on the investigations or the timing of them.
"Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn)," the company said in a statement, without addressing the allegations.
"We will actively cooperate with the relevant units on the related work and operations."
Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations.
"Foxconn's subsidiaries are obliged to actively cooperate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification," Zhang said.
Meanwhile, Bloomberg reported key iPhone assembler Hon Hai Precision Industry Co. said it will collaborate with Chinese authorities on unspecified probes, following a report that officials are conducting tax audits and reviewing land use by parent Foxconn Technology Group Co.
Tax authorities are conducting checks on Foxconn subsidiaries in Guangdong and Jiangsu provinces, the state-run Global Times said Sunday, citing unidentified people with knowledge of the matter. The report also said natural resources officials are looking into the company’s use of land in Henan and Hubei provinces.
No further details of the investigations and tax checks were provided in Global Times’ report. Hon Hai didn’t give specifics either in a filing with Taiwan’s stock exchange. Foxconn’s Zhengzhou plant, known as iPhone City, is located in Henan.
Foxconn billionaire founder Terry Gou resigned from the company’s board last month as he campaigns to become president of Taiwan. The campaign referred questions to Foxconn.
He previously dismissed claims he would be susceptible to Chinese pressure, were he to win January’s election.
- Reuters
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Be the first to like this. Showing 11 of 11 comments
Foxconn will move faster to relocate more production lines to India, Vietnam and south east asia. More unemployment rates in CCP. Please fast fast chase away all the foreign investors. Lol.
2023-10-23 14:44
Foxconn Production Lines Exit China, Global Supply Chain Shift Results in Mass Factory Closures
https://youtu.be/V6vA7BJjCaU?si=rfCB61wCqpA7kSpk
global supply chain restructuring.
2023-10-23 16:33
Apple Supplier Foxconn Begins iPhone 15 Production in India
Apple Inc.’s next-generation iPhone 15 is beginning production in Tamil Nadu, in an effort to further narrow the gap between its India operations and main manufacturing base in China.
A Foxconn Technology Group plant in Sriperumbudur is preparing to deliver the newest devices only weeks after they start shipping from factories in China, as the company seeks to swiftly increase the volume of new iPhones coming from India, people familiar with the matter said.
2023-10-23 16:35
Useless Foxconn.
Ungrateful Foxconn.
Foxconn treating China worse than Philippine treating China?
2023-10-23 16:56
Posted by foongsh > 1 hour ago | Report Abuse
Foxconn Production Lines Exit China, Global Supply Chain Shift Results in Mass Factory Closures
https://youtu.be/V6vA7BJjCaU?si=rfCB61wCqpA7kSpk
global supply chain restructuring.
CCP practising Mao's communism way to lead the country, more foreign investors move out funds from CCP. CCP will also transfer more US dollar to America and make America great again. Lol.
2023-10-23 18:13
Yuan pressured by biggest capital exodus since 2016
Net outflows climbed to around US$75 billion in September despite stronger-than-expected Q3 growth.
Bloomberg - 23 Oct 2023, 12:23pm
SHANGHAI: Capital is exiting China at the fastest pace in more than seven years, piling extra pressure on the yuan.
The exodus has intensified in recent weeks as the nation’s teetering real estate industry casts a shadow over the world’s second-largest economy even after third-quarter growth surpassed economists’ expectations.
China’s currency regulator — the State Administration of Foreign Exchange — said Friday onshore banks sold a net US$19.4 billion of foreign currencies to their clients last month, the most since November 2018, the height of the US-China trade war.
Banks also sent a net US$53.9 billion overseas on behalf of their customers, the biggest monthly outflow since January 2016, shortly after policymakers engineered a depreciation of the currency in August 2015.
Goldman Sachs Group Inc said it’s seeing a similar trend in its preferred gauge, which aggregates transactions in onshore outright spot market, forward market and an official dataset that measures net payments of the yuan from onshore to offshore.
Net outflows climbed to around US$75 billion in September, the most since late 2016 and an almost 80% increase from August, the firm said in a report.
The outflows are placing downward pressure on the yuan, which has weakened this month in both offshore and onshore trading. The currency is less than 1% away from this year’s lows reached in early September.
The shift in part reflects the divergence between interest rates abroad and those in China, where the central bank has been keeping them low in an effort to revive the economy. That’s widened the gap between US and Chinese yields to the most in over two decades.
“The unfavourable interest-rate spread between China and the US will likely imply persistent depreciation and outflow pressures in coming months,” Goldman analysts led by Maggie Wei and Hui Shan wrote in the note.
2023-10-23 18:18
Twin outflows
China saw outflows from both the current account and capital account in September, official data showed. Contributing factors included a service deficit linked with outbound travel, a slump in direct investment and extended securities-related outflows.
Overseas funds cut their holdings of Chinese sovereign bonds by 13.5 billion yuan (US$1.85 billion) in September, according to data released by China Central Depository & Clearing Co on Friday. Their total holding of the debt dropped to 2.07 trillion yuan, the lowest since March 2021.
China’s stock market downturn is also taking a toll. Global funds sold US$1.6 billion of onshore equities Thursday through trading links with Hong Kong, the most in more than two months, as the benchmark CSI 300 index tumbled to a new low for the year.
With the Shanghai Composite Index dipping below 3,000 on Friday, Morgan Stanley said the exodus from onshore equities has entered “an unprecedented stage” and global funds may keep selling unless there is further policy easing.
The cumulative outflows between Aug 7 and Oct 19 amounted to US$22.1 billion, the biggest in the history of Stock Connect, strategists including Laura Wang wrote in a client note.
Stock Connect refers to the trading links between Hong Kong and mainland China, which were expanded in late 2016 to encompass both the Shanghai and Shenzhen exchanges.
2023-10-23 18:20
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Foxcon is the puppet of US. Surely China fights Foxcon
2023-10-23 14:11