Investigation into China’s iPhone maker Foxconn

China has launched an investigation into the land use and tax payments of Foxconn, one of Apple’s largest suppliers.

The government has launched an investigation into Taiwan-based iPhone maker Foxconn, Chinese state media reported yesterday. According to the Global Times, citing anonymous sources, authorities carried out tax inspections at Foxconn companies in two provinces in China.

Foxconn, US tech giant Apple’s largest iPhone maker and one of the world’s largest employers, said it would cooperate with the investigation. China’s natural resources regulatory agency also carried out on-site inspections of land use by Foxconn companies in Henan and Hubei provinces.

“Compliance with the law is a fundamental principle of Hon Hai Technology Group (Foxconn) wherever we operate in the world,” the company said in a statement. “We will actively cooperate in relevant business and transactions.”

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Foxconn founder Terry Gou is running as an independent candidate in Taiwan’s January presidential election. Gou has positioned himself as an alternative to the ruling Democratic Progressive Party (DPP), which is seen as hostile to Beijing, but said he was not afraid of China when he announced his candidacy.

Gou challenged the Chinese government with the words: “If the Chinese Communist Party regime says, ‘If you don’t listen to me, I will confiscate your assets in Foxconn,’ I say, ‘Yes, please do it.'”

Gou, who resigned from his position on Foxconn’s board in September after announcing he would enter the presidential race, maintains his 12.5 percent stake in Foxconn.