Taiwanese companies with a significant presence in China may consider relocating if they perceive undue pressure, according to Taiwan’s Vice President. This warning comes after Chinese authorities initiated an investigation into Foxconn, a major global electronics manufacturer with ties to Apple. The specific reasons for the probe were not provided.
Foxconn stated its willingness to cooperate with relevant authorities but didn’t provide specifics. This investigation coincides with Taiwan’s upcoming presidential elections and ongoing tensions between Taiwan and China.
Vice President Lai Ching-te, a frontrunner in the elections and head of Taiwan’s Democratic Progressive Party (DPP), expressed concerns that Taiwanese businesses might move away from China if they feel unjustly pressured, potentially causing significant losses for China. He urged China to value and respect Taiwanese businesses, especially during election periods.
Foxconn, also known as Hon Hai Precision Industry, is China’s largest private-sector employer. Its founder, Terry Gou, is running as an independent candidate in the elections, while other candidates represent various political parties. The Foxconn investigation highlights Taiwan’s challenges in its relations with China and its inability to communicate on behalf of Taiwanese companies. These difficulties have arisen due to increased tensions between Taiwan and Beijing since President Tsai Ing-wen’s election in 2016.
