TikTok's Chinese owner denied on Monday setting up a subsidiary company in Taiwan after the island's authorities said they were investigating the social media app for running "illegal operations".

The Mainland Affairs Council (MAC), Taiwan's top China policy-making body, said the cabinet had requested a multi-agency investigation during a meeting on security issues posed by TikTok earlier this month. 

The case was also forwarded to prosecutors for investigation after a local company allegedly engaged in business activities in Taiwan on behalf of ByteDance, TikTok's Chinese parent firm, MAC said without elaborating.

Chinese internet and social media platforms are banned from operating businesses in Taiwan under local laws.

ByteDance said on Monday it had no presence in Taiwan.

"The recent reports suggesting ByteDance has set up a subsidiary in Taiwan are incorrect," a spokesperson told AFP.

"The company has not established any legal entities in Taiwan."

TikTok is available in Taiwan but is not especially popular.

The Taiwanese newspaper Liberty Times reported on Monday that the subsidiary under investigation was a company set up in 2018 that changed its name to ByteDance Taiwan Ltd Co in November.

Taiwan has long warned that it is on the receiving end of huge Chinese disinformation and espionage campaigns.

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