I think the salient point in for this discussion is the common cultural heritage of Taiwan and China. When it comes to business China has no concept of a "level playing field". Deception is just a business tool. This goes back many hundreds(maybe thousands) of years in their culture. That's the core cause of China's businesses lack of credibility. I don't think that HIMX is a fraud, but to think that a Chinese company's management always has the shareholders best interest at heart might be a little naive.
Taiwan is known as the Republic China it's true. However Communist China is known as the People's Republic of China. Taiwan is made up of the remaining loyalists to Chiang Kai-shek who fought Mao Zedong during China's civil war. Taiwan is Chinese only symbolically. Functionally they are their own country. They do not take orders from communist China.