Apple supplier in trouble – level 2
Foxconn, a supplier of Apple’s iPhones, is currently undergoing a tax investigation in China.
Some people suspect that the news, which came from China’s state media, could be connected with politics. China may want to influence the elections in Taiwan.
Several companies faced audits by Chinese authorities in recent months but only Foxconn’s investigation is public. These audits are happening less than three months before Taiwan’s presidential election and just at the time when Foxconn wants to increase its production beyond China.
Taiwan, a territory which China claims as its own, often accuses China of trying to influence Taiwan, both through military or economic means.
Difficult words: tax investigation (when authorities check a company’s money transactions and payments to the state), audit (an official financial check of a company), accuse (to say that someone did something wrong).
You can watch the original video in the Level 3 section.
What is the connection between Foxconn's tax investigation and the upcoming elections in Taiwan?
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