Electronics manufacturer Hon Hai Precision Industry Co (鴻海精密) took out half-page ads in major domestic newspapers last week to complain about delays in a Chinese court over the prosecution of a Chinese competitor.
Hon Hai spokesman Edmund Ding (丁祈安) said the company suspects that BYD Co (比亞迪), a Chinese electronics maker based in Shenzhen, is systematically looting its trade secrets.
The purpose of BYD’s alleged actions, domestic media have reported, is to give the Chinese company a leg up against Hon Hai in winning big parts orders from international mobile phone powerhouse Nokia.
The row is a stark reminder that even for the most sophisticated Taiwanese companies — in this case one employing 500,000 Chinese workers — doing business in China is not as simple as it seems.
Cheng Jung-wen (鄭榮文), a senior official at the Taiwan Merchant Association in Shenzhen said the Hon Hai case reflected a tendency among some Chinese officials to favor local companies over outsiders in intellectual property rights disputes.
Cheng said intellectual property theft was a common problem suffered by Taiwanese businesses, but that Chinese officials seemed unwilling to help them address it.
“We have long given up the thought of asking Chinese authorities for help,” Cheng said. “The only way we can avoid damage is to develop new products all the time.”
Hon Hai’s saga began in 2006, when it sued BYD for infringing on its trade secrets after two former China-based Hon Hai employees allegedly took proprietary information with them when they went to work for BYD.
The employees have since been convicted in a Chinese court on infringement charges.
But Hon Hai said that may be only the tip of the iceberg.
Spokesman Ding said that 400 Hon Hai employees have moved to BYD over the past four to five years and many are suspected of providing the company with Hon Hai trade secrets.
Hon Hai is now suing BYD in Hong Kong, court papers show. In parallel, Ding says, Chinese prosecutors have opened a criminal investigation against BYD in Shenzhen — an assertion that the Shenzhen Public Security Bureau would not comment on.
But in any case, Hon Hai fears that the cards may be stacked against it — at least in Shenzhen.
BYD’s head is a member of the Shenzhen People’s Congress, “with the power to remove members of the judiciary,” Hon Hai’s recent newspaper ad said.
“This results in a certain degree of unwillingness among local judicial and police members to deal with the case,” it said.
But the company’s huge China exposure means that its experiences won’t be ignored either, particularly given the considerable respect in which it is held in the local business community.
Despite its China problems, Ding remains confident that a positive resolution to the Hon Hai matter will be found.
“We believe justice will eventually prevail,” he said.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS