2 Taiwanese indicted for hiring engineers for China's OnePlus

Taipei, Jan. 13 (CNA) Two Taiwanese nationals were indicted Tuesday for allegedly recruiting more than 70 engineers in Taiwan on behalf of Chinese consumer electronics manufacturer OnePlus Technology (Shenzhen) Co. without prior authorization.

According to the Shilin District Prosecutors Office, the two individuals, surnamed Lin (林) and Cheng (鄭), were indicted on suspected violations of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area.

Under current Taiwanese law, Chinese companies are strictly prohibited from operating or recruiting talent on the island without explicit government approval.

OnePlus was founded in China in 2013 by Liu Zuohu (劉作虎), producing premium smartphones and software. Liu is also known as Pete Lau to international audiences.

In March 2014, Liu joined Lin and Cheng to establish OnePlus Hong Kong. Later that year, the Chinese founder visited Taiwan to discuss forming a mobile software development team with Lin, and in March 2015, they set up a Taiwanese branch, with Cheng serving as the company's registered manager, the indictment said.

Without the necessary government approvals, Lin followed Liu's instructions to gradually recruit more than 70 engineers for Shenzhen-based OnePlus, who were tasked with developing, testing, and validating mobile software applications for the company.

In May 2019, OnePlus Hong Kong changed its name to Hong Kong Sonic Sky Consultancy, which later prompted the Taiwan office to update its registration as the consultancy's Taiwan branch office, the indictment said.

Prosecutors noted that between August 2015 and January 2021, OnePlus Shenzhen transferred more than US$72.93 million to the Taiwanese company through another Hong Kong-based firm, under the pretext of "contracted research and revenue from selling research results."

The funds were allegedly used to recruit employees in Taiwan, pay salaries, and purchase equipment for business operations, they said.

During questioning, Cheng told prosecutors that she was only responsible for tax planning and claimed she did not understand the company's operations. However, she revealed that the Taiwan branch's sole business was developing mobile software for OnePlus Shenzhen.

Meanwhile, Lin admitted he had been appointed by Liu to serve as head of research and development, responsible for interviewing and leading the team. He said the Taiwan branch never independently recruited clients, with all business directions determined by Liu.