China launches investigation into iPhone maker Foxconn, says state media:
China has launched an investigation into Apple iPhone maker Foxconn over tax and land use, Chinese state media reported on Sunday. The Global Times, citing anonymous sources, said tax authorities inspected Foxconn’s sites in the provinces of Guangdong and Jiangsu and natural resources officials had inspected sites in Henan and Hubei… The Global Times article quoted an expert saying “Taiwan-funded enterprises, including Foxconn . . . should also assume corresponding social responsibilities and play a positive role in promoting the peaceful development of cross-strait relations”.
This is a very big deal and should be keeping Tim Cook awake at night. Effectively, it’s a small shot across the bows for Foxconn, a reminder that without the good graces of the Chinese government, it can’t exist.