Foxconn shares drop after report of China tax audit, land use probe
Foxconn, a major supplier of Apple's iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China.
China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere.
Foxconn said in a statement on Sunday that legal compliance was a «fundamental principle» of its operations everywhere, and that it would «actively cooperate with the relevant units on the related work and operations».
It declined further comment on Monday. Foxconn makes most iPhones at the Zhengzhou plant in Henan province where it employs about 200,000 people, though it has other smaller production sites in India and southern China.
The Global Times did not give details of the tax or land use probes, which have not been officially announced by any Chinese government department.
The report comes less than three months before Taiwan votes in presidential and parliamentary elections.
