Taipei: Two Taiwanese nationals have been indicted for allegedly recruiting more than 70 engineers in Taiwan on behalf of the Chinese consumer electronics manufacturer OnePlus Technology (Shenzhen) Co. without obtaining the required authorization from the Taiwanese government.
According to Focus Taiwan, the Shilin District Prosecutors Office has charged the two individuals, identified by their surnames Lin and Cheng, with suspected violations of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area. Taiwanese law mandates that Chinese companies are prohibited from operating or recruiting talent in Taiwan without explicit government approval.
OnePlus, a company established in China in 2013 by Liu Zuohu, also known internationally as Pete Lau, specializes in producing premium smartphones and software. In March 2014, Liu collaborated with Lin and Cheng to set up OnePlus Hong Kong. By the end of that year, Liu visited Taiwan to discuss establishing a mobile software development team with Lin. Consequently, in March 2015, they founded a Taiwanese branch, with Cheng registered as the company's manager, as detailed in the indictment.
Despite lacking the necessary government approvals, Lin, following Liu's directives, recruited over 70 engineers for OnePlus in Shenzhen. These engineers were engaged in developing, testing, and validating mobile software applications for the company. In May 2019, OnePlus Hong Kong rebranded to Hong Kong Sonic Sky Consultancy, prompting the Taiwan office to update its registration accordingly.
Prosecutors highlighted that from August 2015 to January 2021, OnePlus Shenzhen funneled over US$72.93 million to the Taiwanese company through another Hong Kong-based firm, under the guise of "contracted research and revenue from selling research results." These funds were allegedly employed for recruiting employees, paying salaries, and purchasing equipment for business operations in Taiwan.
During the investigation, Cheng claimed her role was limited to tax planning and denied understanding the company's operations. However, she admitted that the Taiwan branch's sole business involved developing mobile software for OnePlus Shenzhen. Meanwhile, Lin acknowledged his appointment by Liu as the head of research and development, tasked with interviewing and leading the team. He stated that the Taiwan branch did not independently recruit clients, with all business directions coming from Liu.
Source: Focus Taiwan