Four Taiwanese employees of Hon Hai Precision Industry Co., Apple Inc.’s primary assembly partner, have been detained by Chinese police in Zhengzhou, the location of the world’s largest iPhone assembly plant, Bloomberg reports.
The detentions, on charges of breach of trust, have raised concerns about the business environment in China and shaken investor confidence.
The Taiwanese Mainland Affairs Council confirmed the detentions on Wednesday, saying that the employees have not harmed Hon Hai’s interests in any way.
The four employees, who have been detained since earlier this year, are all Taiwanese nationals, according to Elsie Tsai, spokeswoman for Taiwan’s Straits Exchange Foundation. Local Taiwanese media have reported on the detentions.
Foxconn, the flagship company of Foxconn Technology Group, has not commented on the situation as of Thursday, a holiday in Taiwan. China’s Taiwan Affairs Office has also not responded to inquiries.
The incident comes at a time when relations between Taiwan and China are already strained. Last year, Chinese regulators conducted tax audits and reviewed land use by Foxconn when company founder Terry Gou was vying for the leadership of Taiwan, which China considers its territory.
Further scrutiny occurred in 2023 when Chinese tax authorities imposed a 20,000 yuan ($2,800) fine on a Foxconn subsidiary for overstating expenses.
