Four Taiwanese employees of a Chinese factory where Apple devices are assembled were detained by local authorities. This is one of a number of similar incidents that undermine confidence in doing business in China, The Wall Street Journal notes.
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The specialists worked in Zhengzhou at a production complex operated by Taiwan’s Foxconn Technology Group. According to one version, they are accused of an offense related to breach of trust, but neither journalists nor the Taiwanese departments responsible for the island’s relations with mainland China could establish the exact nature of the charges. The Zhengzhou plant plays a central role in Apple’s iPhone supply chain—the entire city is sometimes referred to as “iPhone City.” Taiwan’s Mainland Affairs Council cited Foxconn’s statement as saying that the company did not suffer financial losses related to the actions of its employees. The department called the allegations strange, noted that the wrongful detention could seriously undermine investor confidence in China, and called on Chinese authorities to conduct a quick and transparent investigation into the matter.
In June, the council raised the risk level for travel to China for Taiwanese citizens to the second highest level, recommending avoiding non-essential travel. Beijing’s tightening of national security laws has led to the illegal detention or interrogation of Taiwanese citizens. The department took this step due to the fact that China introduced new regulations aimed at “supporters of Taiwan independence” – they are threatened with measures up to and including the death penalty. Representatives of Taiwan’s Straits Exchange Foundation met with Foxconn and the families of the detainees and reported that assistance was being provided to them.
In 2023, Chinese tax and land authorities launched investigations into Foxconn after company founder Terry Gou briefly attempted to run for president of Taiwan. Subsequently, the tax office of one of the Chinese provinces issued a small fine to the company. Foreign companies in China are concerned about the detention practices, although Chinese officials say they are committed to supporting foreign investment. In August, Shanghai municipal authorities identified the devastation of the “fruit chain”—Apple’s desire to diversify production, partially moving it to India and Vietnam—as one of its most pressing economic problems.