Taiwanese Firm Fires Interior Minister’s Nephew Amid Beijing Sanctions

A high-profile firing at Long Time Technology Co. Ltd underscores the escalating tension between business operations and political loyalty in the Taiwan Strait. The company has dismissed the nephew of Taiwan’s interior minister, a move that follows strict sanctions imposed by Beijing against the minister and his family.

The Dismissal of Yen Wen-chun

Long Time Technology Co. Ltd, headquartered in Fresh Taipei City, has officially severed ties with Yen Wen-chun. According to a statement issued by the company’s mainland subsidiary in Shanggao county, Jiangxi province, Yen was dismissed from all positions he held within the company and its mainland subsidiaries effective April 7.

Prior to his removal, Yen Wen-chun served as the general manager of Long Time Technology. The company has since promoted Terry Hu, the general manager of its Jiangxi province subsidiary, to grab over Yen’s former role.

Political Catalyst: Beijing’s Sanctions on Liu Shyh-fang

The firing is a direct consequence of Beijing’s hostility toward Taiwan’s interior minister, Liu Shyh-fang, who is Yen’s uncle. Beijing has accused Liu of “persecuting mainland spouses in Taiwan,” “actively creating obstacles to cross-strait personnel exchanges,” and “blatantly promoting separatist ‘Taiwan independence’ rhetoric.”

As part of a broader sanction list, Beijing has banned Liu and his family members from entering mainland China, Hong Kong, and Macau. The sanctions prohibit any companies associated with those on the list from engaging in profit-making activities within mainland China.

Company Response and “Solemn Pledge”

Facing the threat of losing its ability to operate in the mainland, Long Time Technology has moved quickly to distance itself from the interior minister’s family. In its official statement, the company “solemnly pledged” to ensure all employees “stay away from any political behaviour that undermines peace and stability across the Taiwan Strait.”

The firm too clarified the use of its resources to avoid further scrutiny from Chinese authorities, stating that corporate funds are used “solely for pure industrial research and development and business development.” The company explicitly prohibited the use of any resources to “directly or indirectly support individuals or organisations with specific political stances,” specifically citing those who violate the one-China principle or advocate for “Taiwan independence.”

Key Takeaways: The Long Time Technology Case

• Executive Shakeup: Yen Wen-chun was removed as general manager and replaced by Terry Hu.
• Political Pressure: The move follows Beijing’s ban on Interior Minister Liu Shyh-fang and his family.
• Economic Risk: Beijing’s sanctions prohibit associated companies from profit-making activities in the mainland.
• Corporate Compliance: The company has pledged to prohibit any funding or support for “Taiwan independence” stances.

Broader Implications for Cross-Strait Business

This incident highlights a growing trend where the private sector is forced to navigate the volatile political landscape of cross-strait relations. When Beijing targets political figures, the ripple effects often extend to their family members and the businesses that employ them.

For Taiwanese firms with mainland subsidiaries, the cost of maintaining political neutrality is becoming increasingly high. The demand for “solemn pledges” and the purging of individuals linked to “separatist” rhetoric suggest that corporate survival in the mainland market now requires explicit alignment with Beijing’s political mandates.

Frequently Asked Questions

Why was Yen Wen-chun fired?

Yen Wen-chun was fired because he is the nephew of Taiwan’s interior minister, Liu Shyh-fang, who is under sanction by Beijing. To protect its mainland operations and comply with Chinese restrictions on profit-making for associates of sanctioned individuals, Long Time Technology dismissed him.

What are the sanctions against Liu Shyh-fang?

Beijing has banned Liu Shyh-fang and his family from entering mainland China, Hong Kong, and Macau, and has prohibited companies associated with them from conducting profit-making activities in mainland China.

Who replaced Yen Wen-chun as general manager?

Terry Hu, who was the general manager of the company’s subsidiary in Jiangxi province, has been promoted to replace Yen.