Apple Stock Dips as Foxconn Faces Fresh Scrutiny From China

Apple's stock price took a small tumble in premarket trading on Monday after reports emerged that a major supplier of the company's iPhones and other hardware is facing fresh scrutiny by the Chinese government. 

Apple's stocks were down by more than 1% in pre-market trading Monday amid the news that Foxconn, a Taiwan-based manufacturer that operates a dozen factories in China, is reportedly under investigation for tax issues.

The probe is focused on Foxconn's subsidiaries in China, according to unnamed sources cited in Reuters. The probe also involves Foxconn's land use practices, according to Reuters.

In a statement, Foxconn said the company would cooperate with the investigations. Details on why the Chinese government has launched these probes have not been made public, but the sources cited in Reuters suggested the reasons may be political, as Taiwan gears up for a presidential election. 

In August, Foxconn founder Terry Gou announced a bid for the Taiwanese presidency. During the campaign, Gou has touted himself as a candidate who can stand up to and improve relations with Beijing. Gou has also stepped down from his role on Foxconn's board.

Apple has itself attracted the attention of Chinese regulators. The company's devices, which counts China as one of its biggest markets, have been reportedly banned from government buildings and sales on the company's latest iPhone, the iPhone 15, have so far appeared slow.