Taipei Calls Arrests “Strange” and Questions Chinese Authorities’ Motives Amid Rising Tensions.
Why Were Workers Arrested on "Breach of Trust" Charges?
Under what Taiwan has described as “strange” conditions, Chinese authorities have arrested four employees of Foxconn, a Taiwanese corporation and the biggest iPhone maker worldwide. Foxconn runs its largest plant in Zhengzhou, Henan province, where the arrests occurred. Taiwan’s Mainland Affairs Council claims the workers were taken into custody under “breach of trust” grounds.
The leading producer of US electronics behemoth Apple, Foxconn, hires hundreds of thousands of Chinese laborers. The corporation has yet to offer a public reaction on the issue.
Is This an "Abuse of Power" by Chinese Authorities?
Concerned about the detentions, Taiwanese officials have hinted at possible misbehavior by Chinese police. In a statement, the Mainland Affairs Council said the episode “undermines the confidence of businesses operating in China,” and suggested the arrests might be an “abuse of power.”
Speaking on the need for anonymity, a Taiwanese official underlined the gravity of the matter by saying:
” Such arbitrary detentions raise questions for Taiwanese businesses and citizens working in the mainland.”
Given Foxconn’s importance as a conduit between Taiwanese industry and China’s economy, this recent move could sour already strained ties between the two sides.
Is Foxconn Facing Political Scrutiny Amid Tensions?
Since October last year, when Chinese officials started looking into the company’s tax and land activities, Foxconn has been increasingly focused. This especially coincided with Terry Gou, the founder of Foxconn, running as an independent candidate in the presidential contest in Taiwan. Some have speculated that these searches and the subsequent arrests might have political overtones.
Although Foxconn is among many Taiwanese companies that are heavily invested in China, its presence in both countries positions the corporation at the hub of the intricate geopolitical scene. As Beijing keeps claiming sovereignty over Taiwan, actions like this could be part of more general pressure on Taiwanese interests.
Why Has Taiwan Issued a Travel Warning for Mainland China?
In reaction to the arrests, Taiwan has advised its people to “avoid non-essential travel” to the Chinese mainland, Hong Kong, and Macau. This caution relates to Beijing’s June declaration of new rules outlining criminal punishments for anyone Beijing regards as “Taiwan independence separatists.” The rules represented a notable change in China’s posture towards pro-independence leaders in Taiwan.
A government official from Taiwan cautioned people visiting China about increased hazards, especially given these new rules:
“Beijing has made it plain that any behavior or attitude questioning its interpretation of Taiwan as a part of China would not be tolerated. The latest arrests simply help to emphasize such issues.
Is the World's Largest iPhone Factory Under Threat?
Often called “iPhone City,” Foxconn’s Zhengzhou facility is the biggest iPhone manufacturer worldwide. Comprising more than 200,000 employees, the plant is vital in manufacturing the cell phones that control the world market. For all its importance, Foxconn has lately encountered labor conflicts and government inspection from Chinese authorities.
The new arrests can cause more disturbance in the facility. Some observers speculate that this development could have knock-on repercussions on Foxconn’s capacity to satisfy world demand, especially should the situation get more severe or more workers be arrested.
What Does This Mean for Taiwanese Businesses Operating in China?
This complicated scenario revolves mainly around the long-standing geopolitical conflict between Beijing and Taipei. Though Taiwan regards itself as a sovereign state with an independent government, Beijing sees the island as a breakaway province that will finally be reunited with mainland China by force if needed.
Notwithstanding these conflicts, Taiwanese companies—including Foxconn—have been in China for decades, leveraging its labor pool and market access. This careful equilibrium has worked for many years, but new events could throw off this balance.
Many Taiwanese people feel sandwiched in the middle of the political conflict. Though most people support keeping the status quo, in which Taiwan neither declares independence nor joins with China, actions like these arrests act as reminders of the always-existing tensions.
As one Taiwanese company executive noted:
“We must negotiate the political terrain quite deliberately. We work in a situation where the guidelines might change overnight.”
It is unknown how Foxconn and the Taiwanese government would react to the detentions and whether this will cause a sea change in Taiwanese-China commercial ties.
