China Rattles Foreign Firms With New Arrests, Foxconn Probe (1)

Chinese authorities are again shaking the confidence of foreign companies in the country with a series of arrests across industries and an investigation into Foxconn Technology Group, Apple Inc.’s most important partner and one of the largest employers in China.

Over the weekend, state media said that regulators are conducting tax audits and reviewing land use by Foxconn, the Taiwanese company that makes the vast majority of iPhones at factories in China. Hon Hai Precision Industry Co., Foxconn’s public arm, said it will collaborate with authorities.

Meanwhile, an executive and two former employees of WPP Plc, one ...