The BGA Taiwan Team, led by Senior Adviser Rupert Hammond-Chambers, wrote an update to clients on Taiwan’s new critical technologies list. 

Context 

  • Taiwan’s National Science and Technology Council (NSTC) on December 5 announced its inaugural list of national core key technologies (國家核心關鍵技術), marking a significant advancement in the protection of intellectual property and trade secrets. The list spans a wide range of sectors, from defense and aerospace to agriculture, semiconductors and cybersecurity. It identifies 22 critical technologies now subject to stringent controls. 
  • The list is designed primarily to enhance the protection of commercial secrets. Minister of Economic Affairs Wang Mei-hua noted that the protections will not affect normal business operations or regular technology exchanges. 

Significance 

  • The previous penalties for trade secret theft were insufficient deterrents and more symbolic than punitive. This led many to succumb to lucrative temptations from China, transfer valuable trade secrets across the Taiwan Strait and collaborate with Chinese companies. 
  • With the new list, a number of commercial secrets have been classified as core technologies, and employees associated with these technologies will need to apply for and receive approval before traveling to China, signaling a more stringent regulatory stance. 

Implications 

  • Companies should note that determinations about whether a scientific research project involves key technology and is subject to control are typically preceded by consultation with the funding government entity. 
  • For Taiwan companies, the list has benefits and downsides. While it may help prevent the outflow of business secrets, many firms will avoid being on the list to prevent leaks during judicial proceedings. 

We will continue to keep you updated on developments in Taiwan as they occur. If you have comments or questions, please contact BGA Taiwan Senior Adviser Rupert Hammond-Chambers at rupertjhc@bowergroupasia.com. 

Best regards, 

BGA Taiwan Team 

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Senior Advisor

Rupert is an expert on Taiwanese political and economic issues and additionally brings a special focus on defense and security within BGA. Rupert concurrently leads the U.S.-Taiwan Business Council, where he was elected vice president in 1998 and president in 2000. Prior to 1994, he served as an associate for development at the Center for Security Policy, a defense and foreign policy think tank in Washington, D.C. Rupert is a member of the board of The Project 2049 Institute. He is also a trustee of Fettes College and is a member of the National Committee on United States-China Relations. Rupert ... Read More