In a move that could exacerbate tensions between the US, China, and Taiwan, Taiwanese authorities have initiated an investigation into four local companies accused of aiding Huawei Technologies in establishing chipmaking facilities in southern China.

The probe, launched by Taiwan’s Ministry of Economic Affairs, follows a recent Bloomberg report that identified the firms involved. While the collaboration’s potential violation of US trade sanctions against Huawei remains uncertain, Economic Affairs Minister Wang Mei-hua assured lawmakers that no confirmed breach had been established.

Wang stated that the companies in question primarily offered services related to wastewater and environmental protection processes and did not deal with critical technology. Notably, Topco Scientific, one of the firms under scrutiny, confirmed its involvement in environmental protection efforts but denied any transactions involving semiconductor materials or equipment with Huawei.

Another company, United Integrated Services, acknowledged its Chinese subsidiary’s involvement in renovating the interior of a semiconductor manufacturer reportedly linked to Huawei. The company emphasized its compliance with all relevant laws and regulations in various jurisdictions.

These Taiwanese firms are allegedly assisting Huawei in building a network of chip factories in southern China, a collaboration that could further strain relations between Taiwan and the Chinese Communist Party. The situation is especially sensitive due to Taiwan’s presidential election in January and the island’s ongoing tensions with mainland China.

The Taiwanese Ministry of Economic Affairs plans to investigate whether these firms’ activities in China align with the scope of their original applications approved by Taipei. The case raises concerns about potential breaches of US sanctions against Huawei, highlighting the complex web of international technology collaborations in the midst of geopolitical tensions. 

Further updates on the investigation are anticipated within the coming weeks, as Taiwan navigates the delicate balance between economic interests and international relations.

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