China’s Ministry of Commerce has imposed export controls on eight Taiwan-based companies connected to the island’s military, including key players in aerospace and shipbuilding sectors such as Aerospace Industrial Development Corporation (AIDC) and CSBC Corporation, Taiwan’s largest shipbuilder. The ban, effective immediately as of July 9, 2025, prohibits the export of “dual-use items” goods with both civilian and military applications to these firms.
The move coincides with the start of Taiwan’s annual Han Kuang military exercises, which simulate defense strategies against a potential Chinese invasion. This year’s drills are expected to be the largest and longest ever, lasting about ten days, twice the length of last year’s exercises.
China justified the export restrictions by citing national and regional security concerns and its commitment to international non-proliferation obligations. Beijing views Taiwan as a breakaway province to be reunified by force if necessary and has labeled Taiwan’s President Lai Ching-te a separatist, refusing to engage in dialogue with his administration.
While most countries, including the United States, do not officially recognize Taiwan as a sovereign state, U.S. law requires support for Taiwan’s defense capabilities, adding complexity to the escalating tensions between Beijing and Taipei.