Taiwan probes two executives for security law breaches over China meddling claims (updated)

China Innovation Investment

26/11/2019 05:22

(Recasts, adds further details)
    TAIPEI, Nov 26 (Reuters) - Taiwan is investigating two
executives at a Hong Kong-listed company on suspicion of
violating the country's National Security Act, prosecutors said
on Tuesday, after they were named in a report about Chinese
meddling.
    The company, China Innovation Investment Ltd  1217.HK , said
on Monday executive director Xiang Xin and alternate director
Kung Ching had been stopped at Taipei's main airport and asked
to cooperate in a probe into Australian media reports about
Chinese interference in Hong Kong and Taiwan.
 urn:newsml:reuters.com:*:nL4N28529G urn:newsml:reuters.com:*:nL4N2850B3
    The allegations were made by a Chinese asylum seeker in
Australia, Wang Liqiang, who said he was a Chinese spy. China
says the man is a convicted fraudster.
    Wang said he was part of an intelligence operation working
within China Innovation Investment to infiltrate Hong Kong
universities and media with pro-Communist Party operatives to
counter the territory's democracy movement. He also gave details
about Chinese efforts to meddle in Taiwan's political system and
elections. 
    The company said the reports were "fictitious and forged"
and that Wang had never been an employee. Hong Kong has been
rocked by months of anti-government protests.  urn:newsml:reuters.com:*:nL4N2851ES
    Xiang and Kung were referred to the Taipei District
Prosecutors Office on Monday night for further investigation on
suspicion of violating the National Security Act, office
spokeswoman Chen Yu-ping said by telephone.
    They have also been ordered not to leave Taiwan, she said.
    The pair was being probed on suspicion of "developing an
organisation" for foreign forces including the Chinese
government, which carries a maximum sentence of five years in
prison, Chen said. 
    "The two litigants were very cooperative ... We are looking
into the purpose of their visit," she said, adding that the pair
made frequent travels to Taiwan. 
    The company did not respond immediately to a request for
comment on Tuesday. It said on Monday the two executives were
staying Taiwan to cooperate with the investigation and had
retained Taiwan lawyers, but it was not immediately clear who
they were.
    Taiwan's Investment Commission, which is under the Ministry
of Economic Affairs, said on Monday the two executives had
applied in late December 2016 to invest T$100 million ($3.27
million) in Taiwan to set up a real estate company.
    However, Taiwan rejected the application in April of 2017
due to national security considerations, it said, without giving
details.
    China Innovation Investment's company profile on the Hong
Kong Stock Exchange website says it is a Kong-based investment
holding company "principally engaged in the investment in dual
usage of military and civil sectors". 
    "The company's investments mainly include military and civil
dual-used charge storage batteries, new models of lighting
products, eco-equipment materials and energy-saving media
terminals," it added. 
    The company's Hong Kong-listed stock price fell more than 6%
on Tuesday.
    It was not clear if the company currently has operations in
Taiwan.    
    Taiwan, claimed by China as its sacred territory, is already
on high alert for Chinese attempts at disinformation and
intimidation ahead of Jan. 11 elections for the presidency and
legislature.
    President Tsai Ing-wen, who's seeking a re-election in
January, urged citizens in August to stay on alert for
Chinese-financed media "infiltration" after a Reuters report of
a Beijing-backed media campaign to purchase press coverage on
the island.  urn:newsml:reuters.com:*:nL4N256074  urn:newsml:reuters.com:*:nL4N25545Z
    Beijing has been cultivating networks of supporters in
Taiwan and ramping up campaigns to lure Taiwanese with lucrative
business opportunities ahead of the key elections, Reuters
reported in June.  urn:newsml:reuters.com:*:nL4N23X2HR
 ($1 = 30.5580 Taiwan dollars)

 (Reporting by Ben Blanchard and Yimou Lee; Editing by Paul Tait
and Richard Pullin)
 ((ben.blanchard@thomsonreuters.com;))