the International Trade Administration (ITA), under Taiwan's Ministry of Economic Affairs, has announced a new export control measure under Article 13 of the Trade Act, effective immediately. Under the new rules, Taiwanese companies must now obtain an export license from the Bureau of Foreign Trade for products sold to Chinese companies such as Huawei and SMIC. This regulation comes as a surprise, as there was no prior notice, and customs officials will now be inspecting exports at Taiwan's borders. Goods without the necessary permits will not be allowed to pass through.
According to a statement from the ITA, the agency regularly holds inter-ministerial review meetings to update its Strategic High-Tech Commodities Export Control Entity List, based on Article 13 of the Trade Act. These updates primarily align with the sanction and control lists of the United Nations Security Council (UNSC) and Taiwan's allied nations. As of now, 10,844 entities and individuals have been added to this list.
The Bureau recently convened a cross-departmental meeting to review the entity list, with a focus on preventing the proliferation of weapons and safeguarding national security. On June 10, 2025, 601 new entities, including companies from Russia, Pakistan, Iran, Myanmar, and China, were officially added. Among these are major Chinese players such as Huawei and SMIC.
Officials from the Bureau of Foreign Trade stated that, following this update, Taiwanese companies wishing to sell electronic components, equipment, and materials to Huawei and SMIC must apply for an export license for strategic high-tech products. The Bureau will collaborate with the Industrial Technology Research Institute (ITRI) to conduct technical assessments and consult with relevant experts before granting or denying approval. The processing time for the first batch of applications is expected to take about 1 to 2 months.
Further complicating the situation, companies in Taiwan must be cautious if they are selling to third-party firms in regions such as Hong Kong or Singapore, which may then re-export to Huawei or SMIC. Similarly, goods supplied by Taiwanese businesses in China to Huawei or SMIC must also be scrutinized, particularly if US technology is involved. Violating US export control regulations could result in even harsher penalties, as US authorities could impose sanctions under their "long-arm jurisdiction" policy.
Officials emphasized that this latest addition to the entity list — which includes both Huawei and SMIC — was not preceded by any prior notice. Taiwanese manufacturers with longstanding business relationships with Huawei and SMIC should take particular care. Taiwanese customs authorities will now actively inspect exports at the borders, and without the required export permit from the Bureau of Foreign Trade, the goods will be denied clearance.
Article translated by Elaine Chen and edited by Jack Wu
