TAIPEI (Taiwan News) — Taiwan’s authorities will increase oversight on the flow of strategic technology to China by acquiring new powers that prevent Taiwan companies from selling off certain assets in China.
Currently, Taiwan companies need only notify the government when they intend to sell off assets in China, but soon they will need to get permission from the Ministry of Economic Affairs, per a Nikkei report. The Executive Yuan will begin reviewing draft regulations on Friday (Dec. 17) with changes likely to come into force around the end of the year.
Another set of laws targeting individuals is in the pipeline. These new laws will stop Taiwanese professionals from divulging trade secrets to “foreign counterforces” in China, per Nikkei.
Draft versions suggest they may also need government approval to travel across the strait, depending on whether they are involved in government-funded research programs. Overly-broad restrictions could hamper innovation though, as it could discourage people from engaging in certain R&D projects.
The Tsai administration has taken other steps to discourage Taiwanese talent heading to China, such as banning job banks from listing openings in China in sensitive technology fields. The changes come amid an increasingly hostile geopolitical environment and increasing competition between the U.S. and China.