Taiwanese authorities have issued an arrest warrant for Pete Lau, CEO of China-based smartphone manufacturer OnePlus, following allegations of illegally employing Taiwanese workers. In addition to Lau, two Taiwanese citizens who reportedly worked under him have been formally indicted.
The controversy centers on accusations that OnePlus illegally recruited more than 70 engineers from Taiwan, violating local laws governing cross-strait business activities. According to the Shilin District Prosecutors Office, OnePlus allegedly established a shell company in Hong Kong under a different name and subsequently opened a branch in Taiwan in 2015 without obtaining government approval.
This branch reportedly focused on research and development (R&D) for OnePlus smartphones, a move prosecutors claim was designed to circumvent Taiwan’s regulatory requirements. Officials argue that OnePlus’s actions breached the Cross-Strait Act, a law that governs economic and business relations between Taiwan and mainland China.
One key provision of the Act mandates that Chinese companies must secure official permission from the Taiwanese government before hiring local workers. Prosecutors allege OnePlus ignored this requirement, enabling the recruitment of dozens of Taiwanese engineers without proper authorization.
The case highlights growing scrutiny of Chinese tech firms operating in Taiwan, particularly in sensitive sectors like semiconductors and mobile technology, where talent acquisition is highly competitive. If proven, the allegations could have significant consequences for OnePlus, including legal penalties, reputational damage, and potential restrictions on future operations in Taiwan.
