TAIPEI (Reuters) – Taiwan Vice President Lai Ching-te on Tuesday hit out at China over its probe of major Apple supplier Foxconn, saying Beijing should “cherish” Taiwanese companies and not put pressure on them during an election.
Foxconn is facing a tax probe in China, two sources close to the company said on Monday, confirming a report in China’s state-backed Global Times.
The sources said they believed it was disclosed for political reasons tied to Taiwan’s January elections where the company’s founder Terry Gou is running as an independent candidate for president.
The Global Times, in an English-language story late on Sunday, said by running, Gou might split the opposition vote, potentially ensuring a victory for Lai who is already leading in the polls.
Beijing detests Lai, whom it believes is a separatist. He says only Taiwan’s people can decide their future, and Beijing has rebuffed his offers of talks.
Speaking at a news conference in Taipei and asked about Beijing’s probe into Foxconn, Lai said China should “cherish and treasure” Taiwanese companies given their help in that country’s economic development.
“Taiwanese companies’ contributions to China are enormous. You scratch my back and I’ll scratch yours – it’s win-win,” he said.
“During an election, China does not need to put pressure on Taiwanese companies, demanding they declare a position, or even that they directly support a candidate they prefer.”
Gou has not commented on the probe, with his campaign team referring questions to Foxconn and pointing out he is no longer involved in the company’s day-to-day running.
Foxconn said in a statement on Sunday that legal compliance was a “fundamental principle” of its operations, and it would “actively cooperate with the relevant units on the related work and operations”.
Foxconn’s shares extended their declines on Tuesday, down more than 2% during mid-morning trade compared to a flat broader market. Shares closed 2.9% lower on Monday.
(Reporting by Ben Blanchard and Jeanny Kao; Editing by Jacqueline Wong and Jamie Freed)
