TAIPEI – In a recent development that has stirred the political waters of Taiwan, Hon Hai Technology Group (Foxconn) found itself under the lens of the Chinese mainland authorities. On Monday, the global tech giant stated its commitment to “cooperate with the relevant departments on the related work and operations” emphasizing that “legal compliance is the basic principle for the group’s operations around the world.” The statement, released on their website, was in response to mainland China’s tax audits and land use investigations of some of Foxconn’s significant mainland subsidiaries.
The timing of this probe has ignited speculations and debates across media outlets in Taiwan. This scrutiny comes as Terry Gou, Foxconn’s founder, is making waves with his independent candidacy for the island leader election. Observers are connecting the dots, theorizing that the mainland might be trying to hinder Gou’s electoral ambitions, especially since his presence could potentially fracture the opposition, indirectly benefiting the Democratic Progressive Party (DPP).
Currently, the electoral battle intensifies. Lai Ching-te, representing the secessionist-leaning DPP, sees his lead over other opposition candidates waning. Should the opposition parties successfully form an anti-DPP alliance, Lai would find himself in a tight spot.
Market reactions were swift and pointed. Foxconn shares took a hit, plummeting by 2.9%, a dip more substantial than the broader market’s 1.2% decline. However, the political arena displayed contrasting hues. DPP stalwarts have jumped to Foxconn’s defense, accusing the mainland of “election interference.”
Experts and analysts opine that the mainland’s tax probes are standard, covering both Taiwanese and mainland companies. Yet, with the election looming in under three months, the DPP appears to capitalize on the Foxconn situation to bolster dwindling support by inflaming anti-mainland sentiments.
DPP’s strategy seems transparent to many. Lai expressed his disappointment at the mainland’s probe, hinting at political undertones. The DPP legislative caucus also echoed these sentiments, suggesting Beijing’s intent to influence Taiwan’s electoral outcome.
Chen Chien-jen, a top executive in Taiwan, shared that they are in touch with Foxconn, assuring them of possible assistance. Wang Jianmin, an expert in cross-Straits relations at Minnan Normal University, emphasized that such tax investigations are routine. However, given Foxconn’s stature and its significant investments in the mainland, it’s natural for it to garner such attention.
Wang further elaborated on the DPP’s pattern of stoking cross-Straits tensions during elections. He cited the 2019 instance where DPP leveraged the Hong Kong riots for electoral gains.
While Foxconn’s founder Terry Gou announced his candidacy for Taiwan’s leadership in August 2023, it’s the intensifying political battles that are making headlines. Hou Yu-ih, the KMT’s candidate, warned against the DPP’s provocations and Lai’s separatist leanings, terming them potential triggers for conflict.
Chang San-cheng, the KMT mayor of Taoyuan city, accentuated the importance of opposition unity for the 2024 victory. With polls indicating diminishing support for DPP’s Lai, the need for a consolidated opposition is more palpable than ever.
Surveys predict that if Gou officially enters the race, he might command a mere 12.4% support. Interestingly, most of his support seems to emanate from other opposition backers. A Beijing expert, wishing anonymity, suggested that Gou’s decision to run, despite slim winning chances, could be due to external pressures, possibly from the US or the DPP, aiming to disrupt the unity in the non-DPP camp.
KMT’s Chu Li-luan and Ko Wen-je met recently, hinting at a possible electoral alliance. This development intensifies the anticipation for the 2024 elections, with Gou’s intent being a focal point. As Gou once stated, echoing unity against DPP’s “corruption syndicate,” Taiwan’s political landscape is set for some high-voltage drama in the coming months.
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