Taiwan’s national security agencies want Hon Hai Precision Industry Company to shelve its plans to invest in China’s Tsinghua Unigroup. That’s according to the Financial Times and Reuters. Taiwan-based Hon Hai is one of the world’s largest contract electronics manufacturers.
China claims Taiwan as part of its territory. There are concerns that Beijing may try to leverage influence against Taiwan if Hon Hai becomes involved with Tsinghua Unigroup, one of China’s largest technology conglomerates.
Hon Hai’s investment deal is awaiting approval from government authorities. However, according to media reports, the government will not let the deal go through.
In response to the report, the economics ministry said that it is still evaluating the deal and that it had no further comment. Taiwan’s investment commission says that it has only asked Hon Hai to present more information in its application. The commission says that the deal’s details are complex, and that it will process it in a manner consistent with the law.