Here's why OnePlus CEO Pete Lau is facing an arrest warrant in Taiwan

What you need to know

• Taiwanese prosecutors issued an arrest warrant for OnePlus CEO Pete Lau over alleged illegal hiring practices in Taiwan.
• Authorities claim OnePlus hired over 70 Taiwanese engineers without approval, violating Taiwan's Cross-Strait business laws.
• The report alleges OnePlus used a Hong Kong shell company to run unauthorized R&D operations in Taiwan.
• OnePlus says that its business operations continue as normal and remain unaffected.

Taiwanese prosecutors have issued an arrest warrant for OnePlus co-founder and CEO Pete Lau over allegations of illegal business operations and hiring practices in the country.

As first reported by Bloomberg, Taiwan's Shilin District Prosecutors' Office has issued the warrant, alleging that OnePlus illegally hired more than 70 Taiwanese employees since 2014. Prosecutors have also reportedly indicted two Taiwanese engineers connected to the same case.

For context, political tensions between China and Taiwan remain high. Under Taiwan's Cross-Strait Act, Chinese companies are prohibited from conducting business or hiring employees in Taiwan without explicit government approval. OnePlus, which is based in Shenzhen, China, allegedly did not obtain such approval, leading to the arrest warrant being issued against Lau.

What Taiwanese prosecutors are accusing OnePlus of

According to the report, OnePlus set up a shell company in Hong Kong under a different name and then established a branch in Taiwan in 2015 without government authorization. That branch reportedly handled research and development, as well as verification and testing work for OnePlus smartphones, actions that prosecutors say violated existing cross-strait agreements.

Android Central reached out to OnePlus for comment, and the company responded by saying that its "business operations continue as normal and are unaffected."

From Taiwan's perspective, the case is being treated as a matter of national security. The country has been increasingly focused on protecting its technology ecosystem and has repeatedly raised concerns about the outflow of talent and intellectual property to China.

While there have been similar cases in the past, Lau's involvement is notable given his role as CEO of OnePlus and Chief Product Officer at Oppo. Taiwan's Ministry of Justice has not yet issued a public statement on the matter.