Taiwan prosecutors have indicted three people for illegally setting up branch offices for a Chinese pharmaceutical company without government approval, a legal setback for Chinese firms trying to expand into Taiwan informally.

• Taipei prosecutors charged three people, including a wellness course teacher, for opening Taiwan offices on behalf of a mainland Chinese herbal medicine company without official permits.
• The offices were set up in Taipei and Kaohsiung and used to run training sessions and recruit people for the mainland company's business in Taiwan.
• The charges fall under Taiwan's law governing cross-strait relations, which requires Chinese for-profit companies to get approval before operating on the island.
• This is part of a broader pattern of Taiwan authorities cracking down on unauthorized mainland Chinese business activity operating under the radar through local proxies.

Outlook: The case will move through Taiwan's court system, and it signals continued scrutiny of mainland Chinese companies operating in Taiwan without proper authorization.