On October 9, 2025, the Chinese side announced sanctions against 14 foreign entities, adding them to the "Unreliable Entities List." This is another countermeasure against the U.S. Among the 14 companies, there are two large enterprises, namely EBIT Systems Inc. and BAE Systems, while the rest are mostly small companies and some nominal consulting institutions. According to media reports, these 14 companies were sanctioned due to their involvement in the Taiwan Strait situation.

[Suicide Unmanned Boats Displayed by Taiwanese Institutions Have a Style Similar to the Ukraine War]

As for how the mainland obtained the list of these companies, it was not difficult at all. On September 18, the "Taipei International Aerospace and Defense Exhibition" opened. It is said that more than 400 manufacturers participated, with over 1,400 booths set up.

Taiwanese media reported that unmanned systems became the biggest highlight of this exhibition. This is directly related to the Ukraine war. In the Ukraine war, both sides extensively purchased various civilian drones produced in China, as well as even toy drone parts, assembling them into homemade drones suitable for warfare, which became a major means of reconnaissance, surveillance, and firepower attacks. It can be imagined how great the deterrence and striking power of China's military drones could be.

[Drones Displayed by the "Zhongshan Institute" in Taiwan]

At the exhibition, many drones, unmanned boats, and anti-drone systems were displayed. However, given the island's R&D and supply chain capabilities, it is impossible to support a complete system for the development and production of unmanned equipment and combat operations. The participation of American-aligned arms merchants is inevitable.

The 14 sanctioned companies have varying degrees of connection with the unmanned systems. Some provide drones, others provide anti-drone systems. For example, anti-drone technology companies provide drone detection equipment, Ibrus provides drone detection and microwave interception equipment, etc. Some provide key components of drones, such as Teledyne FLIR providing infrared thermal imagers. Some are intelligence analysis companies, such as Future Report. Others are arms brokers, such as the Halifax International Security Forum and VSE Company, among others.

[American Companies Selling Strange Drones to the Taiwan Authorities]

In the sanction list, Canada's TechInsights company is very interesting. The Chinese government added the entire corporate group to the blacklist, including its parent company, totaling 12 companies. These companies are located in Spain, Japan, South Korea, Germany, and also have an office in Nanjing Road, Taipei City. They mainly engage in semiconductor industry analysis, chip disassembly analysis, and other services. This company has particularly established a China business, appearing very interested in the Chinese market. However, people cannot help but suspect that it is a semi-public intelligence agency, gathering information on the development status of China's integrated circuit industry for the U.S. alliance. Sanctioning it is justified.

Among the 14 entities, manufacturing enterprises have a common characteristic: they highly rely on China's supply chain to develop weapons and equipment. Without Chinese-made products, especially rare earth products, their production lines would likely run out of materials.

For example, EBIT Systems Inc., a branch of the renowned Israeli arms dealer Elbit, primarily sells surveillance and reconnaissance equipment in the U.S. market. On the day the sanctions were announced, Elbit announced a $50 million contract from the U.S. military to provide military thermal imagers.

BAE Systems, originally from the UK, was once known as British Aerospace, and is a member of the global arms merchant elite. Its products range from aircraft engines, armored vehicles, artillery, radars, to electronic systems, with a complete industrial chain, second only to Lockheed Martin. At the Taipei Aerospace Exhibition, its booth was directly facing the pseudo-ministry of defense, displaying a face-to-face sales approach.

However, after being sanctioned and without access to rare earth materials, EBIT Systems would be unable to produce the focal plane arrays and lens coatings for thermal imagers, while BAE Systems would be unable to produce radars and communication equipment, let alone the electronic warfare kits for F-35s. After being sanctioned, it remains to be seen what they can sell to the Taiwan authorities. This is the power of sanctions when China controls a strong supply chain. Foreign companies and entities will probably need some time to adapt to this new situation.

It is also necessary to mention Teledyne FLIR Company. If we now visit its official website, we will find both Chinese and English language entry points, with the Chinese entry button featuring a five-star flag. Friends who are familiar with equipment know that this company has already entered the mainland China market, actively selling various thermal imaging devices used in emergency, industrial, and medical fields, and has made contributions to the mainland China market. At the same time, the company has set up a branch in Taiwan, named "Teledyne FLIR Co., Ltd.," and its Taiwanese agent Keli Aviation proudly promotes various military thermal imagers. This "two-sided eating" approach can no longer continue. Teledyne FLIR will have to make a decision on its future direction.

[The Police Drone Developed by TeledyneFLIR Equipped with Thermal Imaging]

Previously, other American companies in similar situations have made the right choices. The American satellite communications company ViaSat was sanctioned by China in 2024 for its involvement in arms sales to Taiwan. However, this company is also very active in mainland China, regularly selling satellite communication equipment. Especially in the market for in-flight network connections in Chinese civil aviation, it has significant potential interests. By July 2024, China lifted the sanctions on ViaSat. Although the details were not disclosed, the underlying reasons are easy to speculate.

Therefore, among these sanctioned institutions, will anyone have a change of heart?

Original article: https://www.toutiao.com/article/7559858638764950079/

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