In June 2025, Taiwan blacklisted Huawei and SMIC, restricting Taiwanese companies from exporting to them without government approval, aligning with U.S. efforts to limit Chinese technological advancements, particularly in AI and semiconductors.
- In June 2025, Taiwan added Huawei and SMIC to its strategic high-tech commodities entity list, requiring Taiwanese companies to obtain government approval before exporting to them.
- This move aimed to prevent Chinese companies from accessing advanced semiconductor technologies essential for AI chip development.
- The decision was influenced by concerns over the weaponization of cutting-edge technologies and national security considerations.
- Taiwan's action reflects its position in the global semiconductor supply chain and the ongoing U.S.-China rivalry over technological dominance.
- The move has been viewed as highly symbolic, signaling Taiwan's alignment with U.S. technology restrictions and security concerns.
Taiwan Blacklists Huawei and SMIC in Major Shift Toward U.S. Tech Alignment
In the current US-China technology war, Taiwan has made a bold move by blacklisting Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC) and preventing Taiwanese companies to do one business with them unless with a license. It is an unprecedented step that will bring Taiwan closer to the historically strong United States efforts to restrict Chinese technological development, especially in artificial intelligence and semiconductors. This is the first instance of Taiwan using their export control list to penalize large Chinese companies, a move signaling a change in previous policies that favored cross-Strait business relations.
The blacklist will add further regulations to limit the transfer of advanced semiconductor technology and key components to China, which could hamper Chinese efforts in the development of AI chipmaking. Although the short-term economic effects will not be significant because of the pre-existing or the US-led controls, the move is being viewed to be highly symbolic to signal Taiwan trying to move on its own accord by following the US desired technology restrictions and security fears. This case occurs in the face of great geopolitical tensions, as China criticized the move and threatened that some consequences may follow, whereas the US and its allies demand that such a move must be strictly enforced, lest it leads to the transfer of technology to China. The action of Taiwan highlights its position in the worldwide semiconductor cycle of supply and the rivalry between the US and China over attempts to dominate technologies.
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Frequently asked questions
What prompted Taiwan to blacklist Huawei and SMIC?
Taiwan blacklisted Huawei and SMIC in June 2025 due to concerns over the weaponization of advanced technologies and national security, aiming to prevent Chinese companies from accessing critical semiconductor technologies essential for AI chip development.
How does Taiwan's action affect the U.S.-China tech rivalry?
Taiwan's decision to blacklist Huawei and SMIC aligns with U.S. efforts to limit Chinese technological advancements, particularly in AI and semiconductors, thereby intensifying the ongoing U.S.-China rivalry over technological dominance.
What are the implications for Taiwanese companies exporting to Huawei and SMIC?
Taiwanese companies must now obtain government approval before exporting to Huawei and SMIC, effectively restricting their access to advanced semiconductor technologies and potentially impacting their business operations.
How does this move reflect Taiwan's position in the global semiconductor supply chain?
By blacklisting Huawei and SMIC, Taiwan underscores its critical role in the global semiconductor supply chain and its strategic importance in the U.S.-China technological rivalry.
What are the broader geopolitical reactions to Taiwan's decision?
China criticized Taiwan's move and threatened potential consequences, while the U.S. and its allies demanded strict enforcement to prevent technology transfer to China, highlighting the complex geopolitical dynamics surrounding technology and security.
