Revealed: China's Sly Tactics to Steal Taiwan's 'Treasure'

Taiwanese authorities have uncovered alleged covert practices by Chinese companies in hunting down high-tech talent in the region. At least 11 companies from the Bamboo Curtain country are now under investigation for allegedly recruiting Taiwanese semiconductor engineers illegally. In a major operation conducted this month, more than 185 officers raided 49 locations and examined around 90 people. This investigation targets Chinese companies suspected of secretly attracting Taiwanese experts without official government permission, as cited from Reuters on Tuesday (31/3/2026). Taiwan’s Investigation Bureau states that these companies used various methods to circumvent regulations. One of them involved establishing shell companies based on foreign investment up to opening offices without permission, in order to facilitate recruitment and illegal business activities in Taiwan. This move is seen as part of China’s strategy to suck up the ‘treasure’ of technological expertise from Taiwan, which has long been known as one of the world’s semiconductor industry centres. On the other hand, Taiwan has strict regulations on Chinese investment, especially in strategic areas like chip design. These restrictions make it difficult for Chinese companies to enter legally, so they are suspected of seeking loopholes through unofficial means. Several companies implicated in this investigation include Huaqin Technology, Anker Innovations, Circuit Fabology Microelectronics Equipment, Yangzhou Yangjie Electronic Technology, and SG Micro. To date, these companies have not provided any response. This phenomenon occurs amid rising technological rivalry between China and the United States. Beijing itself is aggressively pursuing independence in the semiconductor sector, including accelerating the recruitment of global talent. Since its formation at the end of 2020, a special task force in Taiwan has handled more than 100 similar cases, indicating that this illegal recruitment practice is not a new occurrence but a recurring pattern.