Electronics Production |
Foxconn no high-tech for China
Foxconn may not register as a high-tech company in China which, in turn, may affect their tax payments.
The new Chinese national standard on high-tech enterprises will push companies like Foxconn out of this group. Under the new rule, high-tech companies must be registered in mainland China, own self-owned intellectual property rights (min. of 5 years), its products must belong to a special category. Moreover, 30% of its staff must have a college diploma (10% of its technical staff), reports the ChinaTechNews. Additional to that at least 60% of its R&D expenditure should be in mainland China and income must also account for more than 60%, states the report.
Now; 90% of Foxconn’s employees are labour-intensive workers (total of around 600000 worldwide); its R&D spending is minimal in respect to its annual sale income. So, Foxconn may lose its status as high-tech company in mainland China, unless its starts to introduce some changes.
