In response to the “red supply chain” to Taiwan infiltration, theft of machine-sensitive technology, poaching talent and other problems are becoming increasingly serious, Taiwan’s Land Commission, the National Security Bureau officials are in support of legislative amendments to plug the loopholes. However, Minister of Economic Affairs Wang Meihua said that the Business Secrets Protection Act and cross-strait regulations have been amended to improve, and that they should be dealt with by way of a case-by-case review.
Taiwan’s Legislative Yuan on Wednesday (31) invited the Minister of Economic Affairs, the Vice Chairman of the Land Commission and the top officials of the National Security Bureau to report on the crisis of the “red supply chain” infiltration and impact on Taiwan.
Vice Chairman of the Council of Land Affairs Qiu Chui-cheng said that the Council has noticed that the “red supply chain” is infiltrating Taiwan through various ways.
Chiu said: “Land-based companies are licensed to invest, but they are engaged in activities that are inconsistent with the purpose of the license, such as trying to steal technology from high-tech companies, or hunting in technology parks. The so-called fake foreign capital, fake Hong Kong capital, and real land-based capital are engaged in projects that land-based capital is not allowed to operate, and lower the wariness of domestic manufacturers to cooperate with them. Through the head of Taiwan or a third place, land-based capital to circumvent the government’s review of land-based capital, mergers and acquisitions of my high-tech companies, in order to obtain technical secrets.
Chiu Chui-cheng pointed out that in recent years, the Chinese mainland actively use various means to infiltrate Taiwan’s high-tech industries, such as semiconductors, to help develop high-tech industries in the mainland, posing a threat to Taiwan, the government should face squarely.
In response to the confrontation or competition between the United States and China, the government’s work report and the outline of the 14th Five-Year Plan and Vision 2035, adopted by the National People’s Congress on March 11 this year, place technological autonomy in a national strategic position. The government should strengthen the prevention and face the threat of the “red supply chain” to the competitiveness of our technology industry and economic development.
Minister of Economic Affairs Wang Meihua said that the impact of the U.S.-China technology war, the development of China’s semiconductor industry is hampered, so through the poaching, tragic penetration and other methods to quickly establish their own supply chain. Due to the abundance of semiconductor talents in Taiwan, and the language is the same, but also become China’s infiltration of Taiwan and poaching target.
Wang Meihua said that in 2018, the prosecution of “fake foreign investment, real Chinese capital” about 40, the Ministry of Economic Affairs has begun to amend the law to fill the loopholes.
Wang Meihua said: strict review of land-based investment in Taiwan, in order to avoid land-based investment in cross-border multi-layered investment to circumvent the review, as well as land-based investment in Taiwan, may be subject to the decision-making instructions of the party, government and military in mainland China and other circumstances, the Ministry in December 30, 2020 to amend the release of the relevant investment licensing approach. There are several key points, such as amending the definition of third-area investment companies, using a layer-by-layer calculation to determine the relevant 30 percent, and amending the standard of having the ability to control, to strictly determine the definition of third-area land-based investment.
National Security Bureau deputy director Hu Muyuan said that China is an important export market for Taiwan, cross-strait industries have long been divided into mutual labor, has formed a supply chain relationship, China relies on Taiwan’s semiconductor and information and communication products, especially chip components and other “intermediate goods” (intermediate goods), behind the reflection of the mainland In terms of technology, it still relies on Taiwan.
Hu Muyuan said: The Chinese Communist Party has taken a national strategic action to foster the development of the “red supply chain” of mainland enterprises, which not only threatens the position of Taiwan, South Korea, Japan and other countries in the global supply chain, but also jeopardizes the international free trade order and fair competition in the industry. What’s more, the Chinese Communist Party is stealing the intellectual property rights of other countries in order to strengthen its own power.
Hu Muyuan said the National Security Bureau continues to collect information on China’s international technology theft trends, as well as infiltration techniques against Taiwan, to prevent the outflow of key technologies.
Hu said: In order to strengthen the countermeasures against the Chinese Communist Party’s unlawful acts of technological theft and poaching, the Bureau has set up a special case with the National Security Bureau, and recently the prosecution and investigation units have uncovered the case of the mainland company “Bit Mainland” setting up a semiconductor research and development center in Taiwan to poach my talent, the Bureau has mastered. At present, the national security unit for technology theft poaching, continue to strengthen the investigation.
Hu Muyuan said, to prevent China’s “red supply chain” to Taiwan infiltration or threat, can not rely on the government alone, but also the people and enterprises and government cooperation, in order to early detection, to reduce the risk of key technology outflow.
In addition, the media recently revealed that the “Taiwan Industrial Technology Research Institute”, established by the Taiwan government, transferred its research and development technology to the science and technology company “Hanwei”, which later transferred the technology and talent team to the mainland. The company then transferred the technology and talent team to mainland China and continued to develop and set up the company “Shanghai Hanwai”. The incident aroused concern and criticism from the legislators.
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