Date
23 November 2017
Foxconn chairman Terry Gou is said to have met Zhengzhou mayor last month to discuss promised subsidies for a new plant. Photo: Bloomberg
Foxconn chairman Terry Gou is said to have met Zhengzhou mayor last month to discuss promised subsidies for a new plant. Photo: Bloomberg

Foxconn urges Zhengzhou govt to deliver on promised subsidies

Foxconn Group is urging Zhengzhou authorities to preserve the tax breaks and other benefits that had been promised by the local government in China, the Wall Street Journal reported.

Terry Gou, chairman of the Taiwan-based electronics manufacturing giant, met last month with Zhengzhou mayor Ma Yi to discuss promised subsidies worth about 5 billion yuan (US$805 million), the report said, citing sources familiar with the matter.

The lobbying came as Beijing has ramped up a campaign against big spending by local governments, the paper noted.

Uncertainty over subsidies is holding up a 35 billion yuan plant that Foxconn aims to set up in Zhengzhou to manufacture high-end phone displays, according to the report.

Foxconn is said to have asked the local government to honor previously granted investment subsidies worth about 2 billion yuan, and also 3 billion yuan of incentives that would cover the next five years.

The Taiwan group also wants the Zhengzhou government to help bear some plant construction and infrastructure costs, according to the report.

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FL/RC

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