Taiwan Blacklists Huawei SMIC Over National Security Concerns

Taiwan has taken a significant step to restrict technology exports to China, adding two major Chinese tech companies, Huawei and SMIC, to a trade blacklist. This move, announced on June 10, places these companies on a “strategic high-tech commodities entity list” that includes firms from various regions, including Russia, Pakistan, Iran, Myanmar, and mainland China. The list now includes hundreds of firms, and Taiwanese companies must seek government approval before shipping any goods to these listed entities.

The administration stated that this action is aimed at combating arms proliferation and addressing national security concerns. In essence, the move is designed to prevent listed companies from accessing Taiwanese chipmaking technology and facilities. This concern is not unfounded, as there have been reports in the past of Taiwanese companies assisting Huawei in building chip plants in mainland China.

TSMC, the largest contract chip manufacturer and a partner to major tech companies like Apple, Nvidia, AMD, and Qualcomm, remains headquartered in Taiwan. The geopolitical tensions between Taiwan and China have escalated this year, with Taiwan's leader labeling China a “foreign hostile force.” China responded with a warning that “those who play with fire will surely be burned.”

This development underscores the growing technological rivalry between Taiwan and China, with Taiwan taking proactive measures to safeguard its advanced technology from potential misuse. The restrictions on Huawei and SMIC are part of a broader strategy to ensure that Taiwan's technological advancements are not exploited by entities that could pose a threat to national security. The move also highlights the delicate balance Taiwan must maintain in its relations with China, given the strategic importance of its technology sector.