TAIPEI (Taiwan News) — The Ministry of the Interior has condemned China for interference after it announced an investigation into Interior Minister Liu Shyh-fang (劉世芳) and her nephew for allegedly undermining cross-strait relations.

On Friday, Hong Kong media reported that Liu’s nephew, Yan Wen-chun (顏文群), holds executive positions in multiple lithium-ion battery companies in China. Reports said he gave significant political donations to Liu, who was blacklisted as a “Taiwan independence die-hard” in January, per UDN.

Following the reports, China’s Taiwan Affairs Office announced an investigation. Spokesperson Chen Binhua said Taiwan independence activists and their relatives will not be permitted to invest in, or profit from Chinese businesses.

On Friday afternoon, Liu responded to the allegations. She countered that the CCP is using smear tactics to intimidate and exert pressure on Taiwanese officials, reported CNA.

Yan is the manager of a company in Taiwan but also serves on the board of multiple Chinese firms involved in manufacturing battery anode materials. He has made 14 trips to China since 2023. He is reportedly the chair of a company in Jiangxi, director of another in Guangdong, and a legal representative of one more in Yunnan, per UDN.

The Hong Kong reports accused Liu of hypocrisy for accepting political donations from Yan. They claim she accepted so-called “red money” while working as a government official to drive a wedge between Taiwan and China.