Are the world's electronics giants about to face a very serious problem? There are many indications of this, all because of further tensions between China and Taiwan.
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Let's not talk about coincidence
One may, of course, believe that this is an absolute coincidence and that the Chinese tax authority in taking Taiwanese company Foxconn under the microscope was not driven by some hidden agenda. It is possible, but even a layman who is not very proficient in geopolitical issues will see that it is difficult to speak of a coincidence in this situation.
After all, let us recall that Taiwan has long been the tongue in cheek of the global rivalry between China and the USA. Beijing sees the island as its sphere of influence, while Washington sees things from a completely different perspective. Ergo? Powerful tensions in the Pacific have long remained the subject of analysis by geopoliticians around the world.
A company under the magnifying glass
How does all this relate to the impending problems of electronic giants like PlayStation and Apple, mentioned at the beginning?
The correlation is direct, as they source components that are manufactured by Taiwanese giant Foxconn. As Reuters in turn reports, the company has just been put under the microscope by the Chinese tax authority.
The audit of Foxconn and its activities is expected to focus on violations within the regulatory and statutory provisions of its subsidiaries. As if this were not enough, an investigation has also been launched into the company's land use in the provinces of Hubei and Henen.
Foxconn, of course, denies any wrongdoing, fraud or misconduct, but according to experts, this action by Beijing may be a mere form of pressure and something of a finger threat to the Taiwanese giant.
We are watching you
- Our operations around the world are conducted in accordance with the letter of the law. This is our basic principle," we can read in the company's brief announcement.
The Chinese bans on Foxconn have not gone unnoticed. For the company's problem will not be separated from the situation of its partners and the main customers of the components it produces.
PlayStation and Apple can rest assured, at least for the time being, but with the balance of power on the international chessboard changing practically from day to day, it can be very difficult to manage and plan your business several moves ahead.
This, in turn, leads to discussions about the health of the supply chain automation industry and its diversification. In this case, however, we are talking about a story for a completely different text.
