In a move that accentuates the escalating trade and technology tensions between Taiwan, China, and the United States, Taiwan’s Commerce Ministry has added Chinese chipmakers Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) to its export control list.

Being included in the list of “strategic high-tech commodities” signifies that Taiwanese companies will now need to secure export permits prior to selling goods to these respective firms. The list also includes organizations such as the Taliban and al-Qaeda, along with other businesses in China, Iran and elsewhere.

The export control entities list was updated most recently on Sunday. Both Huawei and SMIC have yet to comment publicly on their inclusion.

It’s noteworthy to mention that both Huawei and SMIC have faced sanctions from the US previously. These firms are instrumental in producing China’s most advanced indigenous artificial intelligence chips and are striving to compete with US-based Nvidia while supplying Chinese tech companies with the essential chips amid export restrictions.

Taiwan is the hub of the world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), a crucial supplier for Nvidia.

In November of the previous year, the US issued an order, instructing TSMC to stop supplying specific advanced chips to Chinese customers. This move was part of a broader push by the US to limit China’s access to groundbreaking technologies.

While China claims self-ruled Taiwan as its own territory and threatens to annex it by force if necessary, Taiwan enjoys the unofficial allyship and arms supply from the US.