Taiwan is cracking down on tech companies hiding their illegal Chinese ownership

(Image credit: Shutterstock) Chinese companies have reportedly hidden their ownership to operate in TaiwanThey're also poaching Taiwanese workers, paying them up to 10x moreChina is fighting back against US restrictions, but Taiwan wants to protect its own industryTaiwan has reportedly increased the pressure on Chinese technology companies that are hiding their Chinese ownership as it tried to protect its own semiconductor business.The country's Ministry of Justice Investigation Bureau (MJIB) has reportedly investigated 166 cases involving suspected illegal Chinese ownership since 2020, resulting in 36 convictions – 33 of which involved in semiconductor research, development or design.While Taiwanese law doesn't prohibit Chinese companies from operating in Taiwan, they must seek government approval under the Cross-Strait Act, but by obscuring their Chinese ownership they've been looking to circumvent those restrictions.Chinese companies targeted for operating illegally in TaiwanRest of World reports many of the Chinese firms in question established shell companies in third countries or used non-Chinese nationals to register their businesses, making them appear either Taiwanese or generally non-Chinese.The news comes against a backdrop of heightened geopolitics – China has been investing heavily in growing its semiconductor self-sufficiency amid ongoing US restrictions, and have reportedly been poaching Taiwanese engineers with salaries up to 10x higher than average.Taiwan itself is said to account for more than 60% of global semiconductor production, producing around nine in 10 of the world's most advanced processors, so alleged Chinese poaching is especially noteworthy. "Taiwan’s high-tech talent has become a key target for recruitment by Chinese enterprises," the MJIB wrote.In a separate case, the MJIB has also investigated 67 cases involving Chinese companies suspected of stealing Taiwanese trade secrets.Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!Interestingly, the cases don't just relate to smaller start-ups – Xiaomi, OnePlus, Oppo and Semiconductor Manufacturing International Corporation (SMIC) were all named in the report.Fines reported in the cases ranged from around $3,800 to $800,000, with penalties of up to three years' imprisonment also cited. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!