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Companies consider sending Taiwanese workers back from China after death penalty threats | World News

Some foreign companies are considering moving their Taiwanese employees out of China after Beijing said it could impose the death penalty on “hard-line” Taiwanese independence fighters, four people familiar with the matter said.

The new guidelines have sent some Taiwanese expatriates and foreign multinationals operating in China scrambling to assess their legal risks and exposure, said the people, who include a lawyer and two executives with direct knowledge of the discussions.

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“We have been contacted by several companies to assess the risks to their employees,” said James Zimmerman, a partner at Beijing-based law firm Perkins Coie. He declined to identify the companies or industries involved for privacy reasons.

“Companies are always concerned that there are gray areas, such as whether a benign social media post or a vote for a particular political party or candidate in Taiwan’s elections could be interpreted as engaging in pro-independence activities,” Zimmerman said.

Reuters has previously consulted Perkins Coie on issues unrelated to China.

According to the latest Taiwanese government survey, some 177,000 Taiwanese were working in China in 2022. Taiwanese workers are employed by many multinationals in China, given their language skills and cultural knowledge of the country.

Many others work for the myriad Taiwanese companies that operate in China and, according to Taiwanese government estimates, have invested more than $200 billion since 1991, helping fuel China’s growth to become the world’s second-largest economy.

Some foreign companies operating in China have held meetings with their employees on safety, said the two executives, who asked not to be named because of the sensitivity of the issue.

Another source, briefed on the matter, said that some Taiwanese employees in China have been given and accepted the opportunity to leave the country.

‘Extreme minority’ faces death penalty China considers Taiwan, a democratically governed territory, as its own territory. Taiwanese President Lai Ching-te rejects Beijing’s claims of sovereignty, saying only the Taiwanese people can decide their future. He has denounced China’s new directives.

The June 21 guidelines criminalize the promotion of Taiwan’s membership in international organizations where statehood is a condition, official foreign exchanges, and the suppression of parties, groups and individuals who promote “reunification.”

Also illegal are “other acts aimed at separating Taiwan from China” – language that allows Beijing to interpret the rules broadly, legal experts say.

Among the “ringleaders or those who have committed serious crimes,” the guidelines specify that “if the harm done to the country and the population is particularly serious and the circumstances particularly bad, they may be sentenced to death.” The regulations do not specify who may be subject to the death penalty.

Asked to comment on how Taiwanese companies and employees are responding to the guidelines, China’s Foreign Ministry told Reuters in a statement: “Using criminal law measures to punish criminal separatist elements and defend the country’s fundamental interests is a common practice in all countries.

“It should be emphasized that the relevant legislative document targets the extreme minority of diehard ‘Taiwan independence’ elements and their separatist activities, and does not involve the vast majority of Taiwan compatriots,” the ministry said.

China’s Taiwan Affairs Office did not respond to a request for comment. Last week, it said the vast majority of Taiwanese had nothing to worry about and could come “in good health.”

Taiwan’s Mainland Affairs Council, which oversees relations with Beijing, told Reuters in a statement: “The government reminds Taiwanese businesspeople and Taiwanese employees in mainland China that they should now pay more attention to their personal safety. The risk is indeed increasing.” Last week, the council urged Taiwanese to avoid all non-essential travel to China, Hong Kong and Macau because of the new regulations.

The council said last month that eight retired Taiwanese military and police officers had been arrested in China in the past year. Last year, it warned that Taiwanese academics were being arrested and interrogated upon arrival in China, even if they were participating in official exchange programs.

“EXAMINE RISK DAILY”

One of the executives who spoke to Reuters – a senior official who works with Taiwanese investors in China – said his phone lit up after China announced the new guidelines as people discussed what they might mean for their jobs.

He said the guidelines add to the uncertainty of doing business in China, following measures such as China’s anti-espionage law and the national security law for Hong Kong.

The second executive, who works for a large multinational whose Taiwanese executives frequently travel to China on business, said they have regular meetings with senior executives to assess the danger and determine whether to recall those working in the country.

“We are not yet at the stage where we can decide not to send them there, but we are assessing the risk daily,” the official said.

According to Wen-Ti Sung, a fellow at the Atlantic Council’s Global China Hub, the guidelines would force foreign companies to “either relocate their operations entirely to retain Taiwanese talent or stop hiring Taiwanese talent.” This would mean that “even fewer Taiwanese would work or live in China, making Beijing’s attempts to win their hearts and minds even more difficult,” he added.

Beijing has labeled Taiwanese President Lai a “separatist” and held military exercises shortly after his inauguration in May. Taiwan has complained of increased pressure from China since Lai won the January election, including continued military actions, trade sanctions and coast guard patrols around Taiwan-controlled islands near China.

Lai has repeatedly offered to negotiate with China, but his proposal has been rebuffed.

(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)