The Chinese Ministry of Commerce has included eight major dual-use military and civilian enterprises in Taiwan on the export control list, according to reports from Taiwan. Taiwanese legislators pointed out that this move will have limited substantive impact on these eight industries in Taiwan, and will have a counterproductive effect, highlighting the fact that Taiwan is not a part of the Chinese Communist Party.
On July 9, the Chinese Ministry of Commerce issued a notice stating that in order to safeguard national security interests and fulfill obligations such as preventing proliferation, they have decided to include entities such as Aerospace Industrial Development Corporation (AIDC), Avionics Intelligent Technology Inc., Chung-Shan Institute of Science and Technology, Anodyne Technology Co., Ltd., Taiwan International Shipbuilding Corporation, CSBC Corporation, CSEI-CTC Taiwan Ltd., and Aerospace Industrial Development Corporation (AIDC) on the export control list.
Taiwan International Shipbuilding Corporation stated that the supply chain for submarines and coast guard vessels is mainly from Europe and the United States, with military operations screening out the supply chain from China. The impact is therefore limited. The specific effects of including Taiwan International Shipbuilding Corporation on the export control list will depend on the detailed restrictions imposed.
Aerospace Industrial Development Corporation indicated that the military sector is preliminarily judged not to be affected, while most of the raw materials and components in the civilian sector have high substitutability for items from China, resulting in minimal impact.
Taiwanese legislator Wang Ting-yu expressed through a video recording that the Chinese Ministry of Commerce announced the inclusion of eight major companies that provide equipment needed by Taiwan’s defense industry on the export control list. The overall impact on these eight entities in Taiwan is limited. The actual impact depends on the specific materials and goods that the Chinese Ministry of Commerce has prohibited.
Wang Ting-yu mentioned that in terms of the defense industry, Taiwan’s regulations already prohibit the use of Chinese components and technology. In Taiwan, unauthorized use of Chinese components can result in up to three years in prison and inclusion on a blacklist for prohibited transactions.
He pointed out that the Chinese Ministry of Commerce’s announcement of including eight Taiwanese entities on the export control list is somewhat similar to how important international defense industry players like Lockheed Martin and BAE Systems Land and Armament are sanctioned by China each time they provide military equipment to Taiwan. This highlights the political significance of China’s sanctions.
Wang Ting-yu emphasized that China’s move to sanction eight major dual-use military and civilian enterprises in Taiwan is counterproductive to their intended political statement to the world. This episode exposes the falsehood of China’s longstanding claim that Taiwan is part of China, as how can China impose export restrictions on its own country. The export control measures by the Ministry of Commerce have debunked this false claim and underscored the fact that Taiwan is not part of China.
On June 22, President Tsai Ing-wen of the Republic of China held the first event of “Ten Lectures on Uniting the Country,” discussing the concept of “national unity.” She stated that a country is composed of four elements: the people, the land, the government, and sovereignty. China has distorted UN Resolution 2758, claiming sovereignty over Taiwan, which is a grave mistake. The international community does not agree with or recognize such a claim.
On June 24, President Tsai Ing-wen held the second event of “Ten Lectures on Uniting the Country,” focusing on the theme of “unity.” She emphasized that now is the time when Taiwan needs unity the most to resist external annexation. She hopes that the Taiwan independence faction and the Republic of China faction can unite against communism and safeguard democratic Taiwan, rejecting China’s aggressive territorial expansion.