A Taiwanese businessman has been arrested for allegedly stealing military secrets for China in the latest espionage scandal to shake the island, the defence ministry said Tuesday.

The case came to light after the man, identified only by his surname Lai, attempted to recruit military personnel to collect information for China who then turned him in, it said in a statement.

The ministry declined to elaborate citing the confidentiality of an ongoing investigation but denied reports that Lai had accomplices in the military.

Taiwan's United Daily News cited unnamed sources as saying that Lai, 35, was recruited by China last year while he was working for a well-known computer company in Beijing.

He managed to acquire confidential information on Taiwan's Patriot missiles and military drills through an acquaintance, a major in the missile command centre, and received a hefty payment from China, the report said.

Taiwan and China have spied on each other since they split in 1949 at the end of a civil war.

A former Taiwanese intelligence officer was sentenced to life in jail in April for spying on behalf of China, capping one of several espionage scandals that have rattled the island in recent months.

A Taiwanese army major general was arrested earlier this year on spying charges, while a retired local agent alleged that at least 10 Chinese moles are believed to have infiltrated Taiwan's security units.

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