Communist China Companies Steal Trade Secrets From Taiwan Companies to Obtain Apple’s Order

On July 15th, prosecutors in Taiwan accused an Apple supplier from Communist China of stealing trade secrets from a Taiwanese supplier and poaching the employees in order to obtain an order from Apple.

Taiwan New Taipei District Prosecutors said that after one-and-a-half-year investigation, they discovered that the Communist Chinese company Luxshare Precision targeted its Taiwanese competitor Catcher Technology for theft, in order to quickly get access to Apple’s production chain and thus obtain orders.

The prosecutors said in a statement that Luxshare Precision used high salaries as bait to lure Catcher Technology’s Research and Development (R&D) team in Communist China. Therefore, the trade secrets of this Taiwanese company were stolen, which subsequently caused considerable losses. The so-called high salary bait is reportedly that Luxshare Technology employees are promised to pay high settlement fees, annual salaries, and to provide attractive positions such as the title of director.

The statement also mentioned that Luxshare Precision made this decision because it could quickly build premises to massively produce cases for the iPhone, iPad and other Apple products. It is reported that the New Taipei District Prosecutors have charged 14 individuals involved in the case with crimes such as breach of trust and theft of trade secrets for overseas use.

Recently, Taiwan has increased its efforts to stop the Communist Chinese companies from stealing technologies and poaching talents. The Taiwanese government believes that these activities endanger Taiwan’s technological prowess, and indicates that the Ministry of Commerce will do its best to look into and handle such incidents to maintain the healthy development of Taiwanese enterprises and ensure the competitiveness of domestic industries.

In May, the Taiwanese government also raided 10 companies and their R&D centers operating in Taiwan without approval. These companies are suspected of illegally poaching chip engineers and other technical professionals.