March 31, 2021: Vice Chairman of the Land Commission Qiu Chui-cheng: China’s “red supply chain” has become a threat to the competitiveness of Taiwan‘s technology industry.
Taiwan’s Legislative Yuan on Wednesday (31) invited the minister of economic affairs, the deputy chairman of the Land Commission and the top management 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 semiconductor and other high-tech industries, to help develop the mainland high-tech industries, posing a threat to Taiwan, the government should face squarely.
In response to the confrontation or competition between China and the United States, on March 11 this year, the National People’s Congress adopted the “Government Work Report” and the “14th Five-Year Plan and 2035 Visionary Goals Outline”, which listed technological independence as a national strategy. 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 the Chinese Communist Party‘s semiconductor industry is hampered, so through the poaching, tragic penetration and other techniques to quickly establish their own supply chain. As Taiwan is rich in semiconductor talents and speaks the same language, it has become the target of the Chinese Communist Party’s infiltration and poaching of Taiwan.
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 loophole.
On March 31, 2021, Minister of Economic Affairs Wang Meihua: Taiwan is rich in semiconductor talents and speaks the same language, and has become a target for China’s infiltration and poaching of Taiwan. (Photo by Chung Kwong-ching)
Wang Meihua said: strict review of land-based investment in Taiwan, in order to avoid land-based investment in the form of 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 mainland China is an important export market for Taiwan, cross-strait industries have long divided labor between each other, has formed a supply chain relationship, the Chinese Communist Party relies on Taiwan’s semiconductor and information and communication products, especially chip components and other “intermediate goods” (intermediate goods), behind the reflection The mainland still relies on Taiwan in terms of technology.
Hu Muyuan said: the Chinese Communist Party to national strategic action to foster the development of land enterprises “red supply chain”, not only threaten Taiwan, South Korea, Japan and other countries related to the status of the global supply chain, but also endanger the international free trade order and industry fair competition. What’s more, in order to strengthen its own power, the Chinese Communist Party has stolen the intellectual property rights of other countries.
Hu Muyuan said the NSA continues to collect information on the CCP’s international technology theft trends, as well as infiltration methods to 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 special projects 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 the Chinese Communist Party “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, reduce the risk of key technology outflow.
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