Taiwan's legislature has newly passed a set of law amendments to prohibit Chinese enterprises from improperly poaching tech talent or stealing trade secrets and core technologies from Taiwan.
An amendment to the Act Governing Relations between the People of the Taiwan Area and the Mainland Area bars profit-seeking Chinese enterprises and their overseas operations from conducting business in Taiwan unless they have a legally established subsidiary in the country. Violating the rule is subject to a maximum penalty of three years in prison or a fine of NT$15 million (US$506,756).
In screening the amendment, legislators said Chinese companies have illegally come to Taiwan under the guise of foreign and Hong Kong companies, stealing trade secrets and poaching over 500 high-tech talent from Taiwan over the past years. And therefore a strict law is needed to block the loophole.
The new amendment also prohibits unauthorized visits to China by individuals sponsored by the government to develop crucial technologies, and the prohibition also applies to employees of organizations that receive similar government funds. Within three years of stopping receiving government funding, they still need prior government permissions for their visits to China. Offenders will face a fine of NT$2-10 million.
Meanwhile, a newly ratified amendment to the National Security Act prohibits the theft of Taiwan's core technologies for use by hostile external forces, and also outlaws the transfer of confidential information about Taiwan's key technologies to other countries, including China and its special administration regions in Hong Kong and Macau.
Under the revised bill, the transfer of Taiwan's critical technologies and information by means of theft, fraud, and unauthorized replication and for use by hostile forces is an act of economic espionage, which could seriously undermine Taiwan's national security, industrial competitive edge and economic development. Violators of the bill will face up to 12 years in prison plus a fine of NT$5-100 million.
Taiwan's national science organizations and technology associations are required to regularly review the definition of critical technologies, the means of identifying them, and other related matters, according to the new bill.
Taiwan president Tsai Ing-wen is set to officially promulgate the law amendments soon, and related government agencies will also release related enforcement rules.
