Taiwan Busts Chinese Shell Company Operations Stealing Tech Secrets

TaiwanPlus News

Investigators in Taiwan have put a stop to China’s latest attempts to steal the country's tech talent, following a raid on alleged Chinese shell companies suspected of poaching domestic engineers and stealing trade secrets.

Transcript

00:00A raid on an office that's just simply a facade.

00:04Taiwan's investigation bureau has bust open what they say is a sprawling operation by

00:08numerous Chinese organizations, all setting up shell companies in Taiwan in alleged attempts

00:14to gain access to the country's most valuable trade secrets and talent.

00:25As the producer of most of the world's most advanced computer chips, Taiwan is home to

00:29many of the industry's most capable engineers, and Beijing wants them working for China.

00:52It's that cost-effectiveness that could be one reason China has been able to lure away

00:57so many engineers, as Taiwanese employers don't offer competitive salaries.

01:03The investigation identified eight Chinese organizations, including several backed by

01:07Chinese state enterprises and the Communist Party's finance ministry, behind shell companies

01:12set up via third parties and using fake capital.

01:16The complicated network is deliberately designed to muddy paper trails and conceal the identity

01:22of the real benefactors.

01:25While shell companies themselves aren't illegal, misrepresenting what your company does is.

01:30Taiwan also has very strict procedures for companies looking to set up shop if they have

01:35links to China.

01:37Bypassing those procedures is also illegal.

01:40Now in the hands of Taiwan's investigation bureau, the shell companies are going to be

01:44dealt with according to the law, though it's unlikely to deter China from finding new ways

01:50to exercise its influence over Taiwan.

01:53Justin Wu and Rhys Ayres in Taipei for Taiwan Plus.

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