China Investigates Foxconn Amidst U.S.-China Tensions

In response to these inspections, Foxconn has expressed its willingness to actively cooperate with relevant units involved in the investigation. They have further conveyed this message through a statement translated using online tools.

The news of this investigation has not gone unnoticed, as it has had an impact on both Foxconn and Apple. Foxconn's shares fell by 2.2% in Taiwan, while Apple's stock experienced a 0.9% decline in U.S. premarket trading.

Gou, who holds a 12.5% stake in Foxconn despite resigning from the company's board, has expressed his intentions to run for the Taiwanese presidency. His candidacy currently ranks fourth in the polls for the upcoming January election.

Sources close to Foxconn have suggested that the public revelation of this probe may be politically motivated, linked to the election and as a means of cautioning Foxconn regarding its plans to diversify production beyond China.

In conclusion, this investigation poses a significant challenge for Foxconn amidst the complex web of U.S.-China relations, global politics, and Taiwan's upcoming elections. The outcome of these investigations will undoubtedly have far-reaching implications for Foxconn's future endeavors.