Apple Supplier Foxconn's Terry Gou Abandons Taiwan Presidential Race Following Disagreement With Opposition

In a surprising development, Foxconn FXCOF founder Terry Gou has withdrawn his candidacy from the Taiwan presidential race due to a division among opposition parties.

What Happened: Reuters reported that Taiwan’s opposition parties, which advocate for closer ties with China, registered separate presidential candidates on Friday, creating a potential advantage for the ruling party that has been resisting Beijing’s influence. The opposition parties, Kuomintang (KMT) and Taiwan People’s Party (TPP), both campaigning for enhanced relations with China, were unsuccessful in establishing a unified presidential ticket.

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Negotiations between KMT and TPP, facilitated by Gou, were abandoned late Thursday. Gou, who was an independent candidate, confirmed his withdrawal three hours before the registration deadline.

With the opposition divided, the Democratic Progressive Party (DPP) continues its election campaign, with its candidate, Vice President Lai Ching-te, leading in the polls.

Why It Matters: This development comes on the heels of recent scrutiny faced by Foxconn, a significant supplier for Apple Inc. AAPL, by Chinese authorities over tax and land use following Gou’s announcement to run for the presidency. The company was also recently penalized by Chinese tax regulators for overstating expenses, amid an exploratory investigation into its operations.

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