The Taipei District Prosecutor’s Office has filed charges against Feng Yaoxian, the global business vice president of Yaoxun International Company, and his wife Zheng Huiyue. They are accused of engaging in business activities in Taiwan on behalf of China’s Hongwei Technology.
According to Article 40-1, Section 1 of the Cross-Strait Relations Act, companies from mainland China, or those with investments in third regions, must obtain permission from the competent authority in order to establish branches or offices in Taiwan. Without such approval, these companies are prohibited from conducting business activities within Taiwan.
Investigations revealed that Hongwei Technology focuses on the research and development of wireless communication equipment and semiconductor chips, with Zhao Shanshi at the helm. Seeking to expand its market beyond China, Zhao engaged Feng Yaoxian, a Taiwanese national, to set up a branch in Taiwan.
However, upon consulting with the Ministry of Economic Affairs’ Investment Review Office, Feng learned that it was not permissible to establish a joint venture with a mainland Chinese company in Taiwan. In response to this restriction, Feng and his spouse Zheng Huiyue jointly founded Yaoxun International in Taipei, with Feng serving as the company’s head and Zheng managing its accounting and financial operations.
Further investigations uncovered that after the establishment of Yaoxun International, Hongwei Technology wired various sums of money to Feng Yaoxian in 2010, 2016, and 2017 under different pretexts. These funds were purportedly for operating expenses related to marketing and labor services rendered by Yaoxun International in Taiwan. Additionally, from 2010 to 2023, over 9.31 million New Taiwan Dollars were transferred to Feng to facilitate employee salaries and marketing activities necessary for the operations of Yaoxun International.
The prosecutors asserted that Feng Yaoxian and Zheng Huiyue, under the name of Yaoxun International Company, were actively involved in the development and sales of wireless communication equipment components for Hongwei Technology in Taiwan. They are also accused of recruiting personnel, conducting interviews, and negotiating salaries.
With the conclusion of the investigation, the Taipei District Prosecutor’s Office has officially charged both Yaoxun International and the couple, Feng Yaoxian and Zheng Huiyue, with violations of the Cross-Strait Relations Act.