Taiwan VP warns companies could leave China over 'pressure'

Taiwan VP warns companies could leave China over 'pressure'

Taiwan's Vice President Lai Ching-te said Beijing should "cherish" the island's companies after an investigation was launched into tech giant Foxconn
Taiwan's Vice President Lai Ching-te said Beijing should "cherish" the island's companies after an investigation was launched into tech giant Foxconn. Photo: Sam Yeh / AFP
Source: AFP

Economic powerhouse Taiwanese companies based in China may be forced to relocate if they feel "unjustly pressured," the island's vice president warned Tuesday after Chinese authorities launched a probe into tech giant Foxconn.

The Taiwan-based company -- one of the world's largest contract producers of electronics and a key supplier for Apple's iPhones -- is under tax and land investigations in several Chinese provinces, China's state-run Global Times reported Sunday.

It did not specify what authorities are looking into, nor any offences that Foxconn may have committed.

The company said Sunday it would cooperate with relevant authorities "for the operations concerned," without providing further details.

The probe comes as self-ruled Taiwan -- which Beijing claims as its territory and has vowed to seize one day -- prepares for presidential elections in January.

Vice President Lai Ching-te, the current election frontrunner and head of the independence-leaning Democratic Progressive Party (DPP), warned that Taiwanese businesses might move out of mainland China if they feel "unjustly pressured".

Read also

Taiwan defends Foxconn over China tax probe

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

"If they grow wary and fearful, losing trust in China, they might gradually relocate their bases to other countries," he said at a press conference.

"That would be a significant loss for China," Lai said.

He urged China to "cherish and value" Taiwanese businesses and not to pressure them "every time there is an election, asking them to express allegiance or even to support specific candidates."

Foxconn, also known as Hon Hai Precision Industry, is China's largest private-sector employer, with more than a million workers nationwide.

Its billionaire founder Terry Gou -- who handed over management reins four years ago -- is currently running as a long-shot independent candidate in January's elections.

Ko Wen-je of the Taiwan People's People said Foxconn probe reflcts Taiwan's predicament as a 'world orphan' due to deteriorating relations with China
Ko Wen-je of the Taiwan People's People said Foxconn probe reflcts Taiwan's predicament as a 'world orphan' due to deteriorating relations with China. Photo: I-Hwa Cheng / AFP
Source: AFP

The other presidential candidates are Hou Yu-ih of the main opposition Kuomintang party and Ko Wen-je from the small Taiwan People's Party.

Read also

Argentines to vote, seeking escape from economic shambles

Ko, a former Taipei city mayor, said Tuesday the Foxconn probe reflects Taiwan's predicament as a "world orphan" due to deteriorating cross-strait relations with China.

"The biggest problem... is that the Taiwanese government has no way to communicate with China on behalf of Taiwanese companies," he said at a briefing with foreign media in Taipei.

Since President Tsai Ing-wen was elected in 2016, Beijing -- which loathes her for refusing to accept that Taiwan is China's territory -- has cut communication with her government while ramping up military, diplomatic and economic pressures on the island.

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.