By XU Shiqi
The announcement of investigations by the taxation administration and Ministry of Natural Resources into Foxconn has captured the public attention.
The immediate impact of this development reverberated through the stock market, as Foxconn Industrial Internet, a subsidiary of Foxconn, went limit down.
Established in 1988 in Shenzhen, Foxconn has expanded its presence across China, with over 30 industrial parks. Foxconn makes significant contributions to local economies by providing infrastructure and creating tens of thousands of jobs. Consequently, it has been highly sought after by less developed provinces. For instance, officials from Henan and Sichuan provinces engaged in extensive consultations with Foxconn for years to secure projects.
However, the popularity of Foxconn has raised widespread concerns. Foxconn's primary focus on manufacturing components and modules for other brands has long been criticized for its lack of technological competitiveness.
Additionally, given that the company contributes significantly to the GDP of certain regions, the risk could have devastating consequences.
