China has launched an investigation into Taiwan-based iPhone-maker Foxconn, Chinese state media reported on Sunday.
The Global Times, citing anonymous sources, says officials conducted tax inspections at Foxconn businesses in two Chinese provinces.
Foxconn says it will co-operate with the investigation.
The firm, formally known as Hon Hai Precision Industry Co Ltd, is the biggest maker of iPhones and is one of the largest employers in the world.
The Global Times also said China’s natural resources department made on-site investigations into land use by key Foxconn businesses in the provinces of Henan and Hubei.
“Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn),” the company said in a statement.
“We will actively cooperate with the relevant units on the related work and operations,” it added.
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.
Mr Gou has positioned himself, based on his years of experience working in China, as an alternative to the incumbent Democratic Progressive Party (DPP), which is seen as hostile to Beijing.
But he said he was not scared of China when he announced his candidacy: “If the Chinese Communist party regime were to say ‘If you don’t listen to me, I’ll confiscate your assets from Foxconn,’ I would say ‘Yes, please, do it!’
He resigned his seat on Foxconn’s board in September after announcing that he was entering the presidential race. He handed over the management of the company in 2019 when he announced his first run for the presidency but retains a 12.5% stake in Foxconn.
At that time he was a member of the Kuomintang (KMT), a major political party in Taiwan which is seen as Beijing-friendly.