Taiwan issues arrest warrant for OnePlus CEO: Here's Why
What's the story
Authorities in Taiwan have issued an arrest warrant for Pete Lau, the CEO of Chinese smartphone brand OnePlus. The warrant was issued after allegations that Lau illegally hired Taiwanese workers, violating local laws on cross-strait relations. The Shilin District Prosecutors Office confirmed the warrant as part of a larger investigation into claims that OnePlus unlawfully recruited over 70 engineers from Taiwan.
Legal breach
Allegations of bypassing Taiwan's Cross-Strait Act
The case centers around an alleged attempt to circumvent Taiwan's Cross-Strait Act, a law governing economic and commercial activities between Taiwan and mainland China. The act requires Chinese companies to seek explicit approval from the Taiwanese government before hiring local workers or engaging in certain business activities on the island.
Evasion strategy
OnePlus's alleged use of Hong Kong shell entity
Prosecutors allege that OnePlus used a Hong Kong shell company under a different name to establish an unapproved branch in Taiwan in 2015. This entity allegedly operated without regulatory clearance and focused on R&D work for OnePlus smartphones. Taiwanese officials claim this structure was deliberately designed to hide the company's mainland Chinese ownership and evade legal scrutiny.
Industry impact
OnePlus's actions allegedly undermined Taiwan's strategic industries
The Cross-Strait Act was implemented to prevent unauthorized technology transfer and protect Taiwan's strategic industries, especially its semiconductor and electronics engineering talent. Officials believe OnePlus's alleged actions compromised these protections by quietly integrating skilled engineers into its R&D pipeline without oversight. The case has drawn attention to the operations of Chinese tech companies in Taiwan and their tactics to access its highly skilled workforce.
Consequences
Arrest warrant's symbolic weight and potential impact on OnePlus
While the arrest warrant doesn't guarantee extradition, it could have a major effect on OnePlus's global operations, partnerships, and reputation. Taiwan doesn't have an extradition treaty with China, and Lau is unlikely to be arrested unless he enters Taiwanese jurisdiction or a cooperating region.