Amendments passed by the Legislative Yuan in May to impose harsher punishment for economic espionage took effect yesterday.
The changes to the National Security Act (國家安全法) and the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例) were made to protect Taiwan’s core technologies.
The amendment to the latter act prohibits Chinese companies or Chinese-funded entities based outside China from engaging in business activities in Taiwan without government approval.
Photo: Liao Chia-ning, Taipei Times
Offenders could face up to three years in prison and fines of up to NT$15 million (US$481,232). Previously, maximum penalties were one year in prison and NT$150,000.
Additionally, those who allow Chinese-funded businesses to use their name to operate in Taiwan could face fines ranging from NT$120,000 to NT$2.5 million under the new amendments.
The law also stipulates that people commissioned by central agencies to engage in businesses involving Taiwan’s core technologies would need government approval to travel to China.
The approval process is to be drafted by the National Science and Technology Council, which is communicating with local industries and is to announce the related regulations once they are ready, sources said.
To correspond with the amendment, the Ministry of Economic Affairs proposed a change to the Regulations Governing the Permission of Establishing Branches or Agencies in Taiwan by Commercial Enterprise in the Mainland Area (大陸地區之營利事業在台設立分公司或辦事處許可辦法) and the passed amendment was announced on Thursday.
The regulationd have been renamed the Regulations Governing the Permission of Establishing Branches or Representative Offices in Taiwan by a Commercial Enterprise in the Mainland Area or a Commercial Enterprise It Invested In a Third Area (大陸地區之營利事業或其於第三地區投資之營利事業在台設立分公司或辦事處許可辦法).
Branches or offices set up directly by Chinese-funded businesses or indirectly through an entity outside of Taiwan or China would be considered “Chinese-funded businesses,” the ministry said.
Additionally, companies outside of Taiwan or China that receive more than 30 percent of their funding from Chinese businesses, or in which Chinese businesses hold more than 30 percent of the shares, would be considered “Chinese-funded businesses,” it added.
The regulations also stipulate that such branches or offices are banned from engaging in research and development activities to prevent China from poaching talent from Taiwan and protect national security.
The amended regulations limit such business activities to collecting, organizing and analyzing data related to market surveys.
Companies and offices that have not completed registration in Taiwan cannot conduct business in the country, it says.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College