Foxconn says it is cooperating with Chinese authorities in the investigation

Apple supplier Foxconn, officially known as Hon Hai, said it was cooperating with Chinese authorities in investigations following reports that officials were conducting tax audits and reviewing the land use of Foxconn subsidiaries.

State media is the Global Times reported On Sunday, several offices of Hon Hai’s subsidiaries across China were subjected to on-site investigations into tax audits and land use, citing unnamed sources. The report did not elaborate on the investigations.

Hon Hai Technology Group is the world’s largest contract electronics manufacturer. The company assembles consumer products such as Apple iPhones.

“Legal compliance is a fundamental principle of Hon Hai Technology Group (Foxconn) everywhere we operate around the world. We will actively cooperate with relevant departments in relevant work and activities,” the company said in a statement on Sunday.

Han Hai’s Taipei-listed shares fell 3.29% in morning trading on Monday.

The investigations come as Foxconn founder Terry Gou is slated to take office as Taiwan’s next president. Beijing claims the self-governing island as part of its territory.

Gou announced in August that he would enter Taiwan’s 2024 presidential election as an independent candidate after failing to regain the nomination for the main opposition Kuomintang earlier this year. He abandoned an earlier presidential bid in 2019 after the KMT selected a different candidate.

Koh, who stepped down as Foxconn chairman in 2019, resigned as a board member of the company in September.