Taiwan Initiates Investigation into Companies Allegedly Conducting Business with U.S.-Sanctioned Huawei

In response to a recent media report linking four Taiwanese companies to business transactions with entities affiliated to U.S.-sanctioned Huawei in China, Taiwan’s government has initiated an investigation into their activities. The investigation aims to assess whether these firms’ activities in China align with their initial investment approvals from Taiwan’s government.
Huawei Harmony OSTaiwan’s Economy Minister, Wang Mei-hua, stressed that if discrepancies are found between the firms’ actions and their initial investment approval, they could face fines of up to T$25 million ($775,300). The companies in question include Topco Scientific, L&K Engineering, United Integrated Services, and Cica-Huntek Chemical Technology Taiwan. All of these firms have vehemently denied any wrongdoing.

While specific details regarding the potential breaches of rules were not disclosed by Wang, she did mention that the firms were initially engaged in lower-end operations, such as handling wastewater. However, a Bloomberg news report suggested that these companies had collaborated with Huawei-associated firms to construct infrastructure for chip plants.

Wang also emphasized that the Taiwanese government intends to introduce stricter regulations concerning “key technologies,” aligning with international norms and practices. This move comes amid growing concerns regarding Huawei’s operations, given the company’s limitations in obtaining components and technology from U.S. firms for the past four years.

Despite numerous Taiwanese tech companies, including chipmaker TSMC, having operations in China, the Taiwanese government maintains restrictions on the production of highly sensitive technology within the country and closely monitors its companies’ technological investments in China. These precautions are a result of Taiwan’s claim to sovereignty and concerns about increasing military activities by China around the island. Huawei, on the other hand, has not yet responded to the allegations.