Taiwan issues arrest warrant for OnePlus CEO Pete Lau over illegal hiring allegations

Taiwanese authorities have issued an arrest warrant against OnePlus founder and CEO Liu Zuohu (Pete Lau) , alleging the Chinese smartphone brand illegally hired Taiwanese engineers and ran a covert R&D operation on the island by using a Hong Kong front entity to bypass cross-strait restrictions. Prosecutors say the case involves violations of Taiwan’s Cross-Strait Relations Act , which requires mainland Chinese-linked companies to obtain explicit government approval before hiring local workers or conducting business activities in Taiwan. The development has renewed focus on Taiwan’s tightening enforcement against what it views as covert talent recruitment and unauthorised technology work linked to mainland firms.

According to Taiwanese prosecutors, the investigation centres on OnePlus’s alleged recruitment and employment of more than 70 Taiwanese engineers between 2015 and 2021 , without securing the mandatory approvals. Officials allege the engineers were hired to develop and test mobile phone software exclusively for OnePlus , functioning as an extension of the company’s Shenzhen headquarters rather than as an independent Taiwan operation. Prosecutors have also indicted two Taiwanese executives accused of assisting OnePlus in illegally operating this unapproved R&D presence, intensifying legal pressure around the alleged network that supported recruitment and operations.

The prosecution’s case outlines an alleged concealment strategy: OnePlus is accused of establishing a disguised Taiwan branch through a Hong Kong shell company, initially named OnePlus Hong Kong , later renamed Hong Kong Sonar (or Sonic Sky) Consultancy . Authorities claim the Hong Kong firm was used to create the appearance of a non-mainland entity while enabling OnePlus to quietly operate in Taiwan and continue hiring. Taiwan alleges the unit had no independent clients and existed solely to serve OnePlus, with directions reportedly coming directly from Liu and the company’s Shenzhen leadership.

Financial records cited by prosecutors suggest that between 2015 and 2021, Shenzhen OnePlus channelled about NT$2.3 billion (around US$73 million) to the Hong Kong entity under the stated purposes of “entrusted R&D” payments and asset sales . Investigators allege the funds effectively covered salaries, recruitment expenses and equipment costs required to sustain the Taiwan operation. Authorities contend this funding trail strengthens their claim that the Taiwan branch functioned as a hidden internal arm of OnePlus rather than a legally authorised, locally compliant business unit. The entity was reportedly dissolved around 2022 , adding to suspicions that it was created primarily to facilitate undisclosed operations.

While OnePlus has not issued a detailed public response, the issuance of an arrest warrant against Liu does not automatically result in extradition. Taiwan does not have a formal extradition treaty with China, meaning the OnePlus founder is unlikely to be detained unless he enters Taiwanese jurisdiction or a cooperating region. Even so, the case carries significant reputational implications and could complicate OnePlus’s international engagements, partnerships and leadership travel.

For India, the development is not expected to trigger immediate operational disruption. The allegations relate to Taiwan’s cross-strait legal framework and corporate hiring practices on the island, rather than Indian manufacturing compliance or consumer-related issues. Market observers believe any India impact will remain largely indirect, limited to perception and brand scrutiny in a competitive premium segment. However, India continues to be strategically important for OnePlus, supported by local manufacturing and sustained market activity. Taken together, analysts see the Taiwan case as a serious legal and compliance challenge for OnePlus internationally, but not one that currently signals a disruption of its India business.