Taiwan watchdog bites Huawei

It seems that everywhere the Chinese hardware maker Huawei shows its face, trouble is never far behind.

Lately there have been spying accusations leading to the blocking of a deal by US authorities, an ongoing bust up with ZTE.  Even when it tries to do something nice like upgrade London’s ramshackle Tube it is denounced as cunning plan to listen in on boring commuter conversations, although everyone knows you do not talk on the Tube.

Again it is the company links to the Chinese military and government authorities which is doing the firm a lot of harm.

Plans by Huawei to set up branches on the island of Taiwan are now being met with stern opposition from the joining of forces by the Ministry of Economic Affairs (MOEA) and, more seriously, the National Security Bureau (NSB), echoing the attempted deals with 3Leaf and Sprint in the US.

The two organisations will be putting Huawei’s plans to establish itself more firmly in Taiwan under the microscope, with the telecoms operator intent on upgrading a representative office into a branch according to CENS.

It is claimed that this decision is directly linked to Huawei’s top execs being former members of the People’s Liberation Army.

According to Taiwan officials dealing with China business affairs the NSB has the final say.  It is similar to the Committee of Foreign Investment in the United States (CFIUS), which demanded Huawei give up on its attempts to gain ground in the US.

Whether the same situation of resisting expansion moves will occur in Taiwan is yet to be seen of course.

MOEA officials aware that the Chinese government is looking on as events unfold against a background of investment talks between Taiwan`s Straits Exchange Foundation and Chairman Chen Yunlin of China`s Association for Relations Across the Taiwan Straits.