The Ministry of Commerce of China has announced that it will place eight Taiwanese military-related organizations, including the Chung Shan Institute of Science and Technology, AIDC, CSBC Corporation, and Lung Teh Shipbuilding, on an export control list, prohibiting exports of dual-use items. The Chinese authorities claimed that these organizations participated in pro-independence activities, aiming to protect national sovereignty and stability in the Taiwan Strait.

However, the Taiwanese Ministry of National Defense countered that all systems produced by the Chung Shan Institute strictly prohibit Chinese products, perfectly aligning with Taiwan's policy to diversify its supply chain away from dependence on China. Recently, the first domestically-produced submarine, Haikun, successfully completed its third sea trial, exciting military enthusiasts.

According to reports from China Central Television, this export control measures response reflects an increasing concern regarding Taiwan's independence stance since Lai Ching-te took office, jeopardizing peace in the Taiwan Strait. Affected companies such as AIDC and CSBC indicated that the impact on them would be minimal, as they have alternative plans for sourcing components outside of China.