Recently, the Chinese authorities have launched an investigation into Taiwanese tech giant Foxconn on alleged accusations of tax fraud and violations of land regulations. Foxconn, is a major supplier of iPhone assemblies and electronic gadgets and provides employment to over one million Chinese workers nationwide. Currently, the Foxconn billionaire founder Terry Gou is running for President office as an independent candidate in Taiwan’s January polls. Foxconn has recently announced shifting its assembly plants from China to Bangalore, India because of ongoing bout of industrial unrest and continuous diplomatic tensions between Beijing, Taiwan and the United States that slowed down his production in the past months.
The People’s Republic of China (PRC) and the Republic of China (ROC).i.e. Taiwan is not on normal working norms. Beijing claims the democratically ruled Island a part of its territory and vowed to embrace it into mainland China even by force if necessary. On the other hand, Tai Pei is determined to protect its sovereignty and forged close security and defence ties with the United States. Presently, tiny Island nation is one of the most contentious issues between the United States and China.
The contest for the topmost slot in autonomous Taiwan is scheduled for January next year. The business Tycoon and Foxconn founder Terry Gou is running for Taiwan’s President and his election bid has caused serious challenges for pro-Beijing political group in Taiwan. The Billionaire businessman turned politician not only created serious economic issues for Xi’s regime by shifting his businesses to neighbouring countries but also weakening Beijing’s influence in Taiwan’s domestic politics. The Chinese government has moved smartly by dragging Foxconn into a tax probe to ultimately mould Gou’s political and business stance in Beijing’s favor. The Taiwanese government accuses China of political victimization and an interference into Taiwanese businesses in its country. Whatever the case may be, trade and economic corecison had always been a major tool for global powers for arm twisting/ blackmailing of their adversaries throughout the past. However, time would also characterize the real motives behind the newest Beijing-Taipei tussle in the future.
