Taiwan probes 16 Chinese technology companies for illegal operations

Taiwan's Ministry of Justice Investigation Bureau has launched a probe into 16 Chinese technology companies for allegedly operating in the country without proper approval, Taipei Times reported.

According to Taipei Times, officials said the firms are suspected of secretly setting up offices in Taiwan and hiring local staff without authorisation. Between July 15 and August 6, more than 300 investigators carried out searches at 70 locations in Taipei, New Taipei City, Taoyuan and Hsinchu. Around 120 people linked to the companies were questioned during the raids. 

 

The agency noted that Taiwan's high-tech sector is the backbone of its economy, making its talent pool a key target for Chinese businesses.

Investigators said the companies allegedly faked business registrations, pretending to be branches of overseas firms with foreign or Taiwanese investment. The firms under investigation include Hefei-based Lontium Semiconductor Corp, Shanghai's Cista Limited, Novosense Microelectronics Co, Chipone Technology (Beijing) Co, and Huntkey Group, as per Taipei Times. 

 

According to the bureau, Cista is suspected of using a Hong Kong-based front company to disguise itself as a foreign business and open an office in Taiwan to recruit semiconductor engineers. Huntkey, one of China's largest IT firms, is accused of posing as a Hong Kong-based company to set up operations and hire PC power supply engineers locally.

The bureau warned that such activities harm Taiwan's technological competitiveness and said it will continue strict action against Chinese firms operating illegally in the country, Taipei Times reported.