Introduction
Taiwan’s Ministry of Economic Affairs (MOEA) has fined financial technology provider AnyTech (認和科技) NT$2.17 million (US$65,770) for violating regulations on Chinese investment in Taiwan. Despite being registered as a Singaporean company, an investigation revealed that AnyTech received financial backing from Chinese state-owned entities, raising concerns about foreign influence in Taiwan’s financial and cybersecurity sectors.
The case underscores Taiwan’s strict regulatory stance against unauthorized Chinese investments, particularly in industries linked to sensitive financial and digital infrastructure.
Background: AnyTech’s Hidden Chinese Investment
AnyTech, which established a Taiwanese subsidiary through its Singapore registration, came under scrutiny due to its connections with Beijing-based Rivere Tech (江融信科技). According to MOEA’s investigation, Rivere Tech is 25% owned by China SME Development Fund Co., a state-backed fund in which China’s Ministry of Finance is a major shareholder. This connection raised national security concerns, as Taiwan prohibits Chinese companies from investing in local businesses without prior approval.
Minister of Economic Affairs Kuo Jyh-huei (郭智輝) confirmed the findings to lawmakers at the Legislative Yuan on Tuesday, citing Article 73 of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area. This law restricts Chinese enterprises from engaging in investment activities in Taiwan unless specifically authorized. Violations can result in fines of up to NT$25 million.
Concerns Over AnyTech’s Role in Taiwan’s Financial Sector
The controversy surrounding AnyTech escalated when it was revealed that the company had been working on upgrading the core credit card system of Cathay United Bank (國泰世華銀行), one of Taiwan’s largest commercial banks. Given the sensitive nature of financial transactions and cybersecurity risks, Taiwanese authorities intensified their review of the project.
The Financial Supervisory Commission (FSC) Chairman Peng Jin-lung (彭金隆) confirmed that Cathay United Bank had performed a cybersecurity review of the system. The bank reported that no backdoor vulnerabilities, malicious connections, or risks of information leakage were found. However, the contract was officially terminated on Feb. 24, 2025, as a precautionary measure.
Taiwan’s Heightened Cybersecurity Concerns Amid Chinese Influence
Cybersecurity has become a growing concern for Taiwan, especially as tensions with China escalate. The Chinese Communist Party (CCP) has repeatedly stated its intent to annex Taiwan and has been accused of using various means—including cyberattacks and financial influence—to infiltrate Taiwanese infrastructure.
In a national security meeting last Thursday, President Lai Ching-te (賴清德) emphasized the need for proactive measures to counter China’s cognitive warfare and cybersecurity threats. Taiwan has faced a surge in cyberattacks, particularly targeting government institutions, financial systems, and media outlets.
The AnyTech case adds to a series of incidents where Taiwanese regulators have had to crack down on undisclosed Chinese investments in key industries. As digital financial services grow, Taiwan is reinforcing its defensive measures to prevent unauthorized foreign influence in its financial and tech sectors.
Legal Implications and Future Preventive Measures
Taiwan’s strict regulatory framework will likely lead to stricter screening of foreign investments, particularly in finance and technology. The MOEA’s penalty on AnyTech sets a precedent that companies with hidden Chinese state ties will face legal consequences.
In response to this case, Taiwanese authorities are now reviewing potential loopholes that allowed a Chinese-backed firm to operate undetected in Taiwan’s banking sector. The FSC, MOEA, and cybersecurity agencies are expected to introduce stricter due diligence requirements for foreign investments to prevent similar cases in the future.
FAQs
Why was AnyTech fined by Taiwan’s government?
AnyTech was fined NT$2.17 million for violating Taiwan’s investment regulations, as an investigation found that it had financial backing from a Chinese state-owned entity. Taiwan prohibits unauthorized Chinese investments in local companies, especially in sensitive sectors.
What is Rivere Tech’s connection to AnyTech?
Rivere Tech, a Beijing-based company, is partly owned by China SME Development Fund Co., a state-controlled fund under China’s Ministry of Finance. AnyTech received financial backing from Rivere Tech, making it an indirect recipient of Chinese state investment.
What role did AnyTech play in Taiwan’s financial industry?
AnyTech was hired to upgrade the core credit card system of Cathay United Bank, one of Taiwan’s largest commercial banks. However, concerns about its Chinese ties led to an early termination of its contract on Feb. 24, 2025.
What legal action is Taiwan taking against unauthorized Chinese investments?
Under Article 73 of the Act Governing Relations between Taiwan and Mainland China, Chinese companies cannot invest in Taiwan without approval. Fines can go up to NT$25 million for violations. Taiwan is also tightening foreign investment screening to prevent similar cases.
Will AnyTech be banned from operating in Taiwan?
While AnyTech has been fined, authorities have not yet confirmed a formal ban on its future operations. However, Taiwan is reviewing foreign investment policies to tighten restrictions on similar cases in the future.
