On October 9th, the Chinese Ministry of Commerce issued a notice officially listing 14 foreign companies or institutions on the "Unreliable Entity List." This action marks a significant step forward for China in protecting its national sovereignty and security.

The entities sanctioned are mostly involved in high-tech and defense sectors. They have a common feature: they are suspected of cooperating with the Taiwan authorities in military technology, which seriously harms China's sovereignty and security interests.

From a technical perspective, this sanction precisely targets core enterprises in the drone and anti-drone technology fields. The anti-drone technology company is one of the world's leading providers of counter-drone systems, and their technology can detect, identify, and interfere with drone systems.

Dijean Technology Company, which was also sanctioned, specializes in the development of autonomous systems; and Ebit Systems' U.S. subsidiary mainly engages in military electronic equipment. If the technology of these companies were transferred, it could enhance Taiwan's military defense capabilities.

China's current sanctions not only prohibit these companies from engaging in import and export activities related to China but also restrict their new investments within China. More importantly, it prohibits organizations and individuals within China from conducting transactions or collaborations with these entities, especially data transmission and the provision of sensitive information.

Analyzing from a geopolitical perspective, the timing of this sanction is quite meaningful. In the context of the U.S.'s new plan for arms sales to Taiwan, China sends a clear signal to U.S. defense companies through precise sanctions: any military cooperation involving Taiwan will come at a heavy cost.

The Beiyi System Co., Ltd., among the sanctioned enterprises, is one of the world's largest defense contractors. Teledyne FLIR Company is a leader in infrared thermal imaging technology. These companies hold important positions in the global defense supply chain. China's sanctions will force these companies to make difficult choices in their global business strategies—either give up the Taiwan market or lose the entire Chinese market.

Notably, the sanction list includes not only U.S. companies but also institutions such as the Halifax International Security Forum in Canada, indicating that China's countermeasures are no longer limited to traditional defense contractors. The scope of sanctions is no longer confined to previous areas but has expanded further into broader technological and security-related fields.

Recorded Future, as a cybersecurity analysis company, was listed on the sanction list, which indirectly reflects the expanding scope of the concept of security in the digital age. This expansion of sanction scope demonstrates China's evolving understanding of national security, gradually developing towards a comprehensive security perspective covering all areas.

From the perspective of the supply chain, China's recent sanctions demonstrate its formidable countermeasures as a global manufacturing center. Many sanctioned companies rely on China's supply chain system, such as drone components from AeroVironment Inc. and training system equipment from Cubic Global Defense Inc., which are closely related to China's supply chain.

After the implementation of the sanction measures, these companies will face technical challenges and cost pressures in reorganizing their supply chains. Especially against the backdrop of a global shortage of chips, losing the collaboration channels with Chinese semiconductor companies will have a profound impact on the electronics product development of defense companies.

The Chinese government has demonstrated its firm will to protect national sovereignty and its precise countermeasures through this sanction. While maintaining an open market, it has clearly drawn a red line for actions that threaten national security. This balanced approach not only protects national interests but also avoids the adverse effects of excessive sanctions on the global economy.

As the Unreliable Entity List system continues to be improved, China's voice and countermeasure capability in international economic governance will be further enhanced.

Original text: https://www.toutiao.com/article/7560920962531656242/

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