OnePlus CEO Pete Lau faces regulatory review over recruitment compliance

Taiwan prosecutors have issued an arrest warrant for OnePlus CEO and co-founder Pete Lau, accusing him of violating local laws by illegally operating a business and recruiting dozens of Taiwanese engineers for the Chinese smartphone maker, in what authorities say is part of a broader effort to curb China’s attempts to tap into Taiwan’s high-tech talent pool. 

The Shilin District Prosecutors Office in Taiwan said it had also indicted two Taiwanese citizens accused of assisting Lau. Prosecutors allege OnePlus illegally recruited more than 70 engineers in Taiwan to work on smartphone software research, development, verification, and testing for the company. 

The case falls under Taiwan’s Act Governing Relations Between the People of the Taiwan Area and the Mainland Area, which regulates business activities involving Chinese entities. 

The move underscores Taiwan’s intensifying efforts to block Chinese tech firms from poaching local talent, which is a concern officials say is tied to national security risks, particularly in the semiconductor and advanced technology sectors. 

Taiwan prohibits Chinese companies from setting up operations or hiring locally without government approval, but authorities say firms often circumvent the rules by using shell companies registered overseas or posing as foreign entities. In recent years, Taipei has stepped up enforcement. 

In 2024, investigators raided 34 sites across the island as part of a probe into 11 Chinese tech companies, including Semiconductor Manufacturing International Corp (SMIC), which was accused of disguising a Taiwan branch as a Samoan entity to hire engineers. Taiwan’s Investigation Bureau has opened more than 100 similar investigations since launching a dedicated task force in 2020, according to earlier official statements. 

Lau, one of China’s most prominent tech executives, is widely credited with establishing OnePlus as a global smartphone brand known for its premium hardware and customised Android experience. 

Shenzhen headquarted OnePlus became an independent sub-brand under Oppo in 2021, and Lau also serves as Chief Product Officer at Oppo. 

The case unfolds against the backdrop of strained China–Taiwan relations. Beijing claims Taiwan as its territory and has not ruled out using force to assert control, while Taipei rejects those claims and insists its future must be determined by its people. 

Taiwan’s deep technology expertise, especially in semiconductors and electronics, has increasingly made it a target for Chinese recruitment efforts, prompting authorities to clamp down on practices they deem unlawful. Further developments and potential legal proceedings remain awaited as Taiwanese authorities continue their investigation.

Further clarity on the case and Lau’s legal situation remains pending, as OnePlus and Oppo have not commented publicly so far.