Foxconn, one of Apple’s biggest suppliers is under investigation

Chinese officials are reportedly looking into Taiwan's Foxconn, one of Apple's biggest suppliers; it's unclear if the presidential contest is related to the investigations.

Weeks after the founder of Foxconn, Terry Gou declared his candidacy for president of Taiwan, an investigation was launched following his statement emphasizing that he would not bow to Beijing's coercion despite having a large commercial presence there.

Although it's unclear if Gou's entry into the presidential contest is related to the investigations, observers predicted that the move will cause unease among international companies operating in China.

Foxconn's largest plants in the provinces of Guangdong and Jiangsu were recently evaluated by tax authorities, according to a story published on Sunday by the state-owned Global Times. It said, citing unnamed sources, that the ministry of natural resources had also looked into how the corporation used land in the provinces of Henan and Hubei.

In a statement provided, Foxconn stated that one of its "basic principles" was abiding by the law.

Foxconn, a.k.a. Hon Hai Precision Industry, is based in Guangdong and Henan and operates iPhone facilities, the biggest of which is located in Zhengzhou.

The investigation was made public following reports that Chinese police raided the Shanghai headquarters of WPP-owned worldwide advertising agency GroupM as Beijing increased its pressure on foreign companies.

They claim that in the midst of a crackdown on foreign consulting firms on grounds of national security, they are becoming more and more cautious about the growing hazards in the world's second-biggest economy, including the potential for searches and detentions.