Taiwan's Executive Yuan announced on 17 February 2022 a proposal to amend the National Security Act (國家安全法) and the Act Governing Relations between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例, "Cross-Strait Act"). The proposed amendment adds into the National Security Act provisions for an "Economic Espionage Crime" (經濟間諜罪). Per the proposed amendment, a convicted offender would face a maximum of twelve years in prison and be fined 5 million to 100 million NTD.
The Executive Yuan explained that the proposed amendments to the National Security Act and the Cross-Strait Act are for the purpose of preventing China or other hostile foreign forces from stealing Taiwan's critical core technologies and or trade secrets, as well as of enhancing protection of Taiwan's high-tech industries and national economic interests.
The main points of the proposed amendments to the National Security Act and the Cross-Strait Act are as follow:
- The draft amendment of National Security Act creates sanctions for the crime of "Economic Espionage" and stipulates that anyone who infringes Taiwan's critical core technologies or trade secrets for the benefit of China, Hong Kong, Macau, or other hostile foreign entities, as well as anyone who infringes such critical core technologies or trade secrets in foreign regions, will be considered to have commited the crime of "Economic Espionage".
- According to the draft of the proposed amendment to the National Security Act, the High Court or the Intellectual Property and Commercial Court (智慧財產及商業法院) will have jurisdiction over the first instance of cases involving an "Economic Espionage" crime. The Courts may establish a specialized chamber, or appoint judges with special or particular expertise to handle trials where defendants are accused of having committed "Economic Espionage" crimes in order to accelerate the trial procedures.
- The proposed draft amendment of the Cross-Strait Act stipulates that any person/entity who has received support from Taiwan Government agencies with respect to critical core technologies or trade secrets must first obtain permission before said person/entity conducts any activities in China,.
- The draft amendment of the Cross-Strait Act also adds provisions for sanctioning any individual or entity who allows mainland Chinese residents or enterprises use the name of said individual or entity to make an investment that would not be permitted by Taiwan authorities if such investment was made in the name of the Chinese residents or enterprises.
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