China blacklists 11 US companies over Taiwan military tech ties

Beijing targets firms like Skydio and BRINC Drones for endangering national security.

A Skydio X2 Delta short-range surveillance drone from a LUAS (Lethal Unmanned Aircraft System) platoon of the U.S. Army 3rd Brigade, 10th Mountain Division flies during the Combined Resolve 25-1 military exercises at the Hohenfels Training Area in Bavaria on February 3, 2025, near Hohenfels, Germany. Photo by Sean Gallup/Getty Images

By Anna Fadiah and Hayu Andini

China blacklists 11 US companies over Taiwan military tech ties, citing threats to its national security and sovereignty. The decision, announced by the Chinese Ministry of Commerce on Friday, April 4, targets several American firms—most notably drone manufacturers Skydio and BRINC Drones—for allegedly participating in military technology cooperation with Taiwan.

According to the Ministry’s statement, these activities violate China's core national interests and have led to their inclusion on the country's “unreliable entities” list. This move signals a significant escalation in the ongoing geopolitical tension between China, Taiwan, and the United States, particularly as Washington continues to support Taipei with arms and defense technology.

A sharp warning from Beijing

A spokesperson from China’s Ministry of Commerce accused the 11 blacklisted companies of undermining Chinese sovereignty and endangering the country’s development goals. “Despite China’s repeated and firm opposition, these US entities carried out so-called military technology cooperation with Taiwan,” the spokesperson said. “This seriously undermines China’s national sovereignty, security and development interests.”

The spokesperson emphasized that China would hold these companies accountable for their “unlawful activities” in accordance with relevant Chinese laws and regulations. Although the Ministry did not specify the exact legal consequences, previous actions against companies on the unreliable entity list have included restrictions on trade, investment, and visa issuance for personnel.

The firms under fire

Among the 11 companies targeted by the blacklist are Skydio, a California-based drone company that has provided autonomous drone systems to US defense agencies, and BRINC Drones, another US-based firm known for its use in tactical surveillance and emergency response. Both companies have reportedly been involved in defense-related operations in Taiwan.

While the full list of blacklisted entities has not been made public yet, Chinese officials hinted that most of them operate in sectors tied to aerospace, electronics, and defense technology.

The inclusion of these firms reflects China's growing unease with what it views as increasing US interference in its internal affairs—particularly in matters related to Taiwan, a self-governing island that Beijing claims as part of its territory.

A calculated escalation in China–US tensions

This latest round of sanctions comes amid rising diplomatic friction between Beijing and Washington, as the US continues to deepen its unofficial relationship with Taiwan. Over the past year, the US has approved several arms sales to the island and expanded its security cooperation, sparking strong opposition from Chinese officials.

China’s response through the unreliable entity list reflects a broader strategy aimed at countering what it sees as Western efforts to contain its rise. “This is a necessary step to protect China’s national security,” said the Ministry spokesperson. “There is nothing to worry about for honest and law-abiding foreign entities.”

Balancing business and politics

Despite the strong language and action, China also tried to strike a reassuring tone for foreign investors. The spokesperson reiterated China’s commitment to providing a stable and fair business environment for international companies that follow the rules.

“The Chinese government has always welcomed companies from all countries to invest and operate in China,” the official said. “We will continue to uphold the principles of fairness, openness and transparency in our regulatory actions.”

However, experts note that such assurances may ring hollow for multinational firms that fear being caught in the crossfire of geopolitical disputes.

The strategic significance of the entity list

China’s unreliable entity list, first introduced in 2019 as a response to US export restrictions on Huawei and other Chinese tech companies, is a tool aimed at punishing foreign firms that “endanger national sovereignty, security or development interests.” Its use has remained limited until recently, but Friday’s announcement marks a notable expansion of its scope and application.

Analysts suggest that the list serves as both a warning and a signal of China’s willingness to retaliate economically. “By targeting companies with links to Taiwan's defense sector, China is making clear that it will use all tools at its disposal,” said Li Cheng, a senior researcher at a Beijing-based think tank.

“It's not just about punishing these companies—it’s about sending a message to Washington.”

International reaction and implications

While the US government has not yet issued a formal response to the blacklist, past actions against American companies have drawn sharp criticism from Washington. US officials have often accused Beijing of using economic leverage to silence political dissent and suppress foreign support for Taiwan.

In contrast, supporters of the blacklist within China argue that the move is justified and necessary. Chinese state media outlets have praised the government for taking a firm stance and defending national sovereignty in the face of external provocation.

As global supply chains grow increasingly intertwined with political conflict, the use of economic instruments like blacklists and sanctions may become more frequent. For the affected companies, access to the Chinese market could now be at risk—along with their reputation and ability to secure international contracts.

Risk, retaliation, and resilience

The blacklisting of 11 US companies over their military tech ties with Taiwan is not just a headline—it’s a strategic decision with ripple effects across industries and continents. As China and the US continue to navigate an increasingly competitive and confrontational relationship, businesses operating between the two powers will need to weigh political risk as carefully as they do market opportunity.

With elections looming in Taiwan and growing tensions in the South China Sea, analysts predict that economic tit-for-tat measures may intensify. The inclusion of Skydio and BRINC Drones may just be the beginning, particularly if more US companies are found to be aiding Taiwan's defense modernization.

For now, the world watches closely as two of the globe’s largest economies leverage not just military might and diplomacy, but also commerce and compliance, in their ongoing strategic rivalry.

China blacklists 11 US companies over Taiwan military tech ties—a move that reflects Beijing’s growing assertiveness in protecting its national interests. As international companies navigate the uncertain waters of geopolitics, this development underscores the rising stakes for global trade and diplomacy in an increasingly polarized world.