China says Foxconn employees probed for bribery, embezzlement

BEIJING – China’s government said on Oct 11 that employees of Taiwan’s Foxconn, the world’s largest iPhone assembler, are being investigated for suspected taking of bribes and embezzlement, after Taiwan reported their detention.

Taiwan’s government said this week that four Foxconn employees had been detained in China under “quite strange” circumstances in Zhengzhou, home to a major Foxconn plant assembling Apple’s iPhones, on suspicion of the equivalent of “breach of trust”.

China’s Taiwan Affairs Office, in a statement to Reuters, said the Foxconn staff are suspected of crimes, including taking bribes and embezzlement, and that investigations are ongoing. It did not state how many were being investigated.

“The relevant departments are handling the case strictly in accordance with the law and are protecting their legal rights in accordance with the law,” it added, without elaborating.

Foxconn, formally known as Hon Hai Precision Industry, declined to comment.

The China policymaking Mainland Affairs Council in Taiwan said this week that Foxconn said the company had “suffered no losses and that the four employees had done nothing to harm the company’s interests”.

The case may be connected to corruption and abuse of power by a small number of Chinese security officials, the council added, without giving details.

Democratically governed Taiwan, which China claims as its own territory, has repeatedly warned its citizens to be aware of the potential dangers of visiting the country.

In June, the Taiwanese government raised its travel warning for China, telling Taiwanese not to go there unless absolutely necessary, after a threat from Beijing to execute those considered “die-hard” Taiwan independence supporters.

Taiwanese businesses have invested billions of dollars in China since the country began landmark economic reforms four decades ago, drawn by a common culture and language, and much lower costs. REUTERS