Chinese mobile phone OnePlus "disguised as a Hong Kong business" recruiting engineers in Taiwan! Chairman Liu Zuohu wanted by Taiwan authorities

Chinese mobile phone brand OnePlus uses cross-border capital to recruit engineers in Taiwan,涉嫌violating the Cross-Strait Regulations, Taiwan’s Shilin District Prosecutors Office has issued a wanted notice for OnePlus founder Liu Zuohu.
(Background summary: Taiwanese biotech boss All-in cryptocurrency was scammed out of 50 million! He was also abducted and mortgaged his house to “turn things around”)
(Additional background: In 2026, the debate over “stablecoins as EasyCards” continues. How many more nonsense words will Taiwan’s conservatives spout?)

According to Central News Agency reports, Liu Zuohu recruited engineers in Taiwan through “Hong Kong-based OnePlus” starting in 2014. In 2019, it was renamed “Hong Kong-based Sheng Na (Sonar)”, claiming to be an acoustic consulting firm, but in reality, it received large sums of money transferred from third parties such as “Hong Kong Dasheng International Trade,” and paid about 70 Taiwanese software engineers under “R&D service fees.”

Investigations found that OnePlus founder Liu Zuohu assigned manager Lin to recruit over 70 engineers in Taiwan. Although they officially received Taiwanese salaries, the actual business, personnel, and financial rights were controlled by the Shenzhen headquarters.

Manager Lin admitted that he was helping OnePlus boss Liu Zuohu, and had recruited about 70 engineers to develop and test mobile software. Although the salaries were paid by the Taiwanese branch, they were actually working for the Shenzhen parent company, and even the year-end bonuses required Liu Zuohu’s approval.

The nominal responsible person, Mr. Zheng, claimed he only handled tax matters and was unaware, but was contradicted by evidence. Prosecutors believe the company used “fake foreign investment” to evade regulations, illegally engaged in R&D and talent poaching in Taiwan, and severely disrupted the market. Therefore, Liu Zuohu has been issued a warrant, and Lin and Zheng have been prosecuted for violating the “Cross-Strait Relations Act.”

Capital packaging “Wrapper” used in cross-border employment

This employment structure, quite popular in the tech industry, is often called “capital packaging” by the West. Using Chinese funds as an example, it first obtains foreign investment status through a Hong Kong company, thereby bypassing restrictions on Chinese capital under the Cross-Strait Relations Act. Then, through multiple layers of payment chains, funds flow from the Chinese parent company to Hong Kong, and finally into Taiwan, ultimately used for engineer salaries and equipment expenses.

Because multiple layers of transfer obscure the true source of funds, similar to the logic of mixers on the blockchain. Over seven years, a total of NT$2.3 billion in R&D expenses were injected into Taiwan in batches, maintaining a team skilled in optimizing Android system software and hardware integration.

Part of the geopolitical tech blockade?

As the Trump administration entered its second term, the U.S. reinitiated high-intensity restrictions on Chinese technology. The most advanced chips and foundational licenses became difficult to obtain, hardware upgrades were hindered, and Chinese companies could only increase software optimization to extend product life cycles.

Taiwanese engineers, familiar with SoC calibration and firmware optimization, are regarded as a reliable technical supply base in Asia. However, this case symbolizes that cross-border “shell R&D” arbitrage methods are becoming increasingly difficult to operate. It reflects the U.S. tightening its grip on China’s technological talent pool, while Taiwanese judicial authorities are also strengthening investigations, narrowing gray areas continuously.