Taiwan Exposes China’s Covert Channels of Military Infiltration Amid Rising Espionage Threats

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Taipei, Taiwan| Taiwan’s Ministry of National Defense has officially revealed five primary infiltration channels used by the Chinese government to penetrate the island’s military establishment, raising fresh alarms over Beijing’s expanding espionage campaign and cognitive warfare operations against the self-governed democracy.

The disclosure, detailed in a document titled “Measures Related to National Security Incidents and Security Review Mechanisms”, was submitted to the Legislative Yuan’s Judiciary and Legal Affairs Committee on April 22.

The report presents a sobering account of how China has embedded sophisticated networks within Taiwan’s society to gain access to sensitive military information and influence operations from within.

According to the Ministry, the five main infiltration conduits exploited by Chinese intelligence operatives include:

  1. Criminal organizations – These groups often serve as intermediaries or enforcers, helping Chinese agents make contact with vulnerable military personnel or civilians with access to classified information.
  2. Underground financial systems – Illegal banks and money-laundering networks are used to discreetly transfer funds for espionage activities, including bribes and operational expenses.
  3. Shell companies – These entities provide a cover for intelligence activities, posing as legitimate businesses while recruiting assets or purchasing sensitive data.
  4. Taoist temples – Leveraging religious and cultural institutions, Chinese operatives reportedly use places of worship for covert meetings and influence-building in local communities.
  5. Civilian clubs and social organizations – Community groups serve as platforms to identify, groom, and manipulate individuals with links to the military or government agencies.

The Ministry’s report emphasizes that these infiltration efforts are not limited to passive intelligence gathering.

Beijing’s operatives have been actively engaging in recruitment strategies that include monetary inducement, psychological manipulation, and blackmail—often targeting military personnel burdened by personal debts or those recently retired from service.

A particularly alarming dimension of China’s campaign, experts say, is its integration of cognitive warfare—a psychological strategy aimed at eroding public confidence in national institutions through the deliberate dissemination of misinformation, disinformation, and fabricated narratives.

By distorting public perception and sowing distrust within the armed forces, cognitive warfare seeks to destabilize Taiwan from within without engaging in conventional military conflict.

“China is not just looking to steal military secrets,” noted one defense analyst. “They are trying to compromise the morale of our forces, disorient decision-makers, and manipulate the broader narrative among civilians.”

This concern is echoed by academic circles and former intelligence officials. Liu Der-liang, former director of Taiwan’s Military Intelligence Bureau, recently warned that as many as 5,000 Chinese spies may already be embedded across Taiwan, with many operating in deep cover.

The revelations come at a time of heightened geopolitical tensions in the Taiwan Strait, as China ramps up both military pressure and non-traditional warfare tactics aimed at forcing unification with the island, which Beijing views as a breakaway province.

Taiwan, on the other hand, continues to assert its sovereignty and democratic governance.

Observers believe these hybrid tactics—which blend traditional espionage with modern psychological warfare—are part of a broader Chinese strategy to weaken Taiwan’s defense capabilities ahead of any potential conflict.

In response, Taiwan is expected to significantly boost its counterintelligence and internal security protocols, with particular emphasis on monitoring the post-service activities of military veterans, scrutinizing civilian affiliations, and tightening control over financial networks that may facilitate covert Chinese operations.

As Taipei grapples with this multi-layered threat, the government’s latest disclosure is likely to serve as both a public warning and a call to action—one that underscores the urgent need for vigilance, transparency, and resilience in the face of an evolving and increasingly sophisticated adversary.

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