Mr Gou, from Foxconn, could run for Taiwan's presidency and step back from his day-to-day activities

TAIPEI (Reuters) – Foxconn chairman Terry Gou said on Tuesday that he plans to run in the Taiwan presidential election in 2020, a day after Reuters announced that the tycoon was planning to step down from the big subcontractor of the world.

Speaking on the sidelines of an event in Taipei, Gou declined to say which party he could represent, though any candidacy could upset the political playing field at a time of heightened tensions between the party and the party. autonomous island and Beijing.

If it was the opposition, the Kuomintang (KMT), which is a friendly country of China, he would "follow" the party's usual procedures, said Gou, adding that he would make that decision as soon as possible ".

"I did not sleep last night … The year 2020 is the key for Taiwan. The tense situation (with China) is explained by the fact that it is a turning point for Taiwan's political orientation, economy and defense for the next 20 years, "said Gou.

"So I wondered all night … I have to wonder what I can do. What can I do for youth? … The next 20 years will decide their fate, "he said, with tears in his eyes.

The KMT said in a statement that Gou had been a member of the party for more than 50 years and had granted him an interest-free loan of 45 million Tibetan dollars ($ 1.5 million) in 2016, under the name of his mother. This decision testified to his "loyalty" to the party.

The KMT did not immediately respond to media inquiries as to whether Gou was eligible to participate in the party's already highly competitive primary elections.

Mr. Gou, the richest Taiwanese with a fortune of 7.6 billion US dollars according to Forbes, told Reuters on Monday that he planned to retire in the coming months to allow young talents to climb the echelons of society.

The company then announced that Mr. Gou would remain chairman of Foxconn's board, although he plans to withdraw from his daily activities.

Taiwan is gearing up for the January presidential elections at a time of heightened tensions in the Taiwan Strait, with Chinese bombers and warships doing exercises Monday around the island.

A senior US official described military maneuvers as a "constraint" and threat to stability in the region.

Some observers said Washington was likely to cautiously welcome any candidacy for Gou's presidency.

"I do not think the United States would be happy to see it run because it is close to China and that at present the United States is wary of China," he said. said Shane Lee, a political scientist at Chang Jung University in Taiwan.

"PEACE IS THE GREATEST ARMY"

China claims that Taiwan belongs to it and has promised to bring back the island by force, if it considers it a sacred territory under Chinese control.

The United States has no formal ties to Taiwan, but is legally obliged to provide the island with the means to defend itself and is its main source of weapons.

"We need peace. We do not need to buy too many weapons. Peace is the most powerful weapon, "Gou said, adding that Taiwan needed only a self defense.

"If we spend money for weapons for economic development, for artificial intelligence, to invest in the United States, it would be the greatest guarantee of peace."

"Which children are ready to sit in these fighter jets?"

A source familiar with the situation said that Gou was about to announce his decision on the presidential bid later Tuesday at the earliest and was due to go to the Foxconn factory in Shenzhen on Wednesday. south of China.

The shares of Foxconn, formerly known as Hon Hai Precision Industry Co Ltd and whose market value is around $ 40 billion, closed up 0.7% on Tuesday.

A Taiwan Stock Exchange official told Reuters there was no regulation on the candidacy of a company executive for the presidency of the island.

Taiwan's Progressive Democratic Progressive Party is expected to announce a presidential candidate in May, including President Tsai Ing-wen and former prime minister William Lai.

FOXCONN MANAGEMENT PUSH

Rouers asked Reuters on Monday that he would resign as president, but at 69, he was heading in that direction, but any decision was to be discussed with Foxconn 's board of directors.

"I do not know where this information comes from. But I have to say that basically I'm working in that direction: go back to the second line or retire, "Gou said.

He also reported a major management overhaul.

"At the board meeting from April to May, we will release the new list of board members," said Gou without further details.

Founded in 1974, Foxconn Group is the world's largest contract manufacturer with annual sales of $ 5.2 trillion (US $ 168.52 billion). He assembles products for a large number of global technology companies, but relies on Apple Inc. for more than half of his annual business, analysts said.