OnePlus has a problem. Founder and CEO with arrest warrant

Taiwanese prosecutors have issued an arrest warrant against Pete Lau, founder and CEO of OnePlus. The case concerns suspicions of illegally acquiring specialists from Taiwan, which, according to investigators, was to give the smartphone manufacturer a clear competitive advantage. It’s another high-profile example of tensions over the transfer of talent from the island, which has been a target of Chinese tech companies for years.

According to the prosecutor’s office in Taipei, OnePlus allegedly established a shell company in Hong Kong in 2015 under a different name and then launched its branch in Taiwan without the required consent of the authorities. Research and development work on the brand’s smartphones was carried out under this banner. These activities were to violate the so-called Cross-Strait Act, i.e. regulations protecting the safety and interests of Taiwanese citizens.

OnePlus is not the only company in the crosshairs. Taiwanese authorities are investigating similar practices of several companies from China. Huawei is also among them, and according to previous reports, it tried to tempt engineers from TSMC by offering them up to three times their previous earnings. Taiwan has long been considered a real talent mine for the Chinese technology sector, and the lack of a language barrier makes it even easier for such specialists to change their workplace.

However, this is not a situation that the government in Taipei views with leniency. The presence of the world’s largest semiconductor manufacturer means that the state applies very restrictive regulations designed to protect know-how and prevent unfair competition.