Taiwan tightens security to thwart China's covert grip on medical supply chains

Taipei [Taiwan], October 8 : The Taiwanese government is tightening its national security mechanisms to prevent potential Chinese infiltration into the country's medical cold chain logistics, a senior security official said, as reported by the Taipei Times.

According to the Taipei Times, the statement came after Mirror Media revealed that Pharma Logistics, which handles the medical logistics of nearly half of Taiwan's leading hospitals, including National Taiwan University Hospital and Taipei Veterans General Hospital, has ties to Chinese political and military entities through its parent company, Kerry TJ Logistics Co.

Kerry Logistics' parent companies are connected to Hong Kong's KLN Logistics Group and KHL Holding, which share cross-investments with China's SF Holding Co., the country's largest logistics company. SF Holding, which acquired Kerry Logistics in 2021, maintains a strategic cooperation agreement with the People's Liberation Army (PLA) Air Force and operates under China's "military-civil fusion" programme.

The security official emphasised the need to enhance security checks on critical infrastructure and major industries, particularly those linked to essential medical and daily supply logistics.

The government plans to bar monopolies in critical sectors and thoroughly vet companies collaborating with state institutions for any signs of Chinese capital or influence.

Experts, including Hung Pu-chao, deputy director at Tunghai University's Center for Mainland China and Regional Development Research, warned that Chinese involvement in Taiwan's medical logistics could expose the nation's health data, delivery networks, and supply information to Beijing's intelligence network.

He noted that under China's National Intelligence Law, companies are legally required to assist in state intelligence efforts, heightening the risk of surveillance and data breaches.

Hung urged the government to designate medical logistics as a critical infrastructure, restrict Chinese investments, and prioritise domestic management to safeguard Taiwan's defence and healthcare resilience, as highlighted by the Taipei Times.

The Deputy Health Minister Lin Ching-yi stated that the Ministry of Health would coordinate with related agencies to build backup logistics systems and secure medical information networks, ensuring national security and uninterrupted access to essential medical resources, as reported by the Taipei Times.

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