Published 12:21 IST, January 28th 2025
Cryptocurrency, Seduction, and Spying: How China Infiltrates Taiwan’s Cyber Defenses
Taiwan faces escalating espionage threats as the Chinese Communist Party (CCP) intensifies efforts to weaken the island's sovereignty.

Taipei, Taiwan – As Beijing ramps up its campaign to reunify Taiwan under its control, new reports shed light on the Chinese Communist Party’s (CCP) use of military intimidation, economic coercion, and an escalating espionage network to destabilize Taiwan's defences and political stability. Despite China's relentless efforts, Taiwan continues to assert its sovereignty and promote its democracy, resisting the growing pressure from the mainland.
According to a report by globaltaiwan.org, Chinese espionage activities targeting Taiwan have surged dramatically in recent years. Between 2011 and 2023, 40 espionage cases involving 113 military and civilian personnel were uncovered—an alarming rise compared to the 13 cases reported from 2001 to 2009. This spike, compounded by the CCP’s increasingly sophisticated methods, has heightened security concerns for Taiwan and its allies.
China’s Espionage Network in Taiwan: A Growing Threat
In its bid to weaken Taiwan from within, Beijing has adopted a multi-pronged espionage strategy, targeting military personnel and civilian entities alike. Taiwan’s National Security Bureau reported 84 national security cases since 2023, underscoring the scale of infiltration attempts. The military remains the primary target, with a notable uptick in recruitment of both active-duty and retired officers.
In 2024, 64 individuals were charged with espionage, marking a one-third increase from the previous year. Among the most prominent cases was that of retired Colonel Liu Sheng-shu, who was sentenced to 20 years for orchestrating a spy network. Reports reveal that Chinese agents frequently exploit financial struggles among Taiwanese citizens, offering cash, gifts, or even cryptocurrency payments to gain access to sensitive information.

Additionally, the CCP has expanded its recruitment tactics, leveraging shell companies, criminal gangs, underground banks, and even religious organizations to infiltrate Taiwan’s military and government. In some cases, agents have resorted to more traditional methods of espionage, including seduction and blackmail, to manipulate targets.
"The CCP’s recruitment strategy has become increasingly aggressive, with a clear focus on infiltrating Taiwan's defence infrastructure," a senior Taiwanese intelligence official said.
Espionage Beyond Taiwan: A Global Concern
While Taiwan remains a focal point, China's espionage activities are not limited to the island. Recent incidents in Europe and Southeast Asia highlight the CCP’s far-reaching intelligence network.
Europe: In a high-profile case, Jian Guo, an aide to German Member of European Parliament (MEP) Maximilian Krah, was arrested on charges of spying for China. Jian allegedly accessed sensitive parliamentary information, passing critical details on negotiations and legislative decisions to Chinese intelligence.
Southeast Asia: In January 2025, the Philippines arrested Chinese software engineer Deng Yuanqing and two Filipino accomplices for allegedly spying on military facilities. The trio reportedly used advanced surveillance equipment to gather intelligence on critical infrastructure, further intensifying regional security concerns.
These incidents illustrate China’s growing influence and its strategic use of espionage to gain a foothold in foreign governments, raising alarms about national security and sovereignty in several nations.
Taiwan’s Countermeasures: The Path to Resistance
In response to Beijing’s aggressive tactics, Taiwan is stepping up efforts to safeguard its sovereignty and counter Chinese infiltration. Experts emphasize the importance of bolstering national security through a combination of legal, operational, and public-awareness measures.

Key recommendations include:
- Strengthening National Security Laws: Taiwan needs to enhance legislation to address modern espionage tactics, ensuring robust penalties and preventive measures against spying.
- Public Awareness Campaigns: Educating citizens about the recruitment methods used by Chinese agents is crucial in preventing individuals from falling prey to espionage activities.
- Improved Intelligence Sharing: Closer collaboration between Taiwan’s security agencies would enable real-time responses to emerging threats, improving overall counterintelligence capabilities.
- Military Counterintelligence Training: With the military being a primary target, dedicated training programs are necessary to equip personnel with the skills to recognize and report espionage attempts.
- Centralized Counterintelligence Authority: Establishing a single authority to oversee and coordinate counterespionage efforts could streamline operations and ensure efficient use of resources.
"China’s tactics have evolved from traditional spying to leveraging advanced digital platforms and psychological manipulation," said a Taiwanese defence expert. "If Taiwan hopes to defend itself effectively, it must adapt just as swiftly, focusing on technological innovation and societal resilience."
China’s Endgame: Reunification at All Costs
Beijing’s ultimate goal remains reunification, which it views as a core part of its national agenda. The Chinese leadership has not ruled out the use of force, further escalating tensions in the region. However, Taiwan’s government has made it clear that it will not bow to Chinese intimidation.

Taiwanese President Tsai Ing-wen has repeatedly emphasized the island’s commitment to democracy and sovereignty, rejecting Beijing’s "One China" framework. "Taiwan stands as a beacon of democracy in the face of authoritarian aggression. We will continue to defend our freedom and values," she stated during a recent address.
Updated 12:21 IST, January 28th 2025