Country vs Country

Taiwan to make unlicensed AI chip exports to China a crime

Taipei will add advanced semiconductors and AI servers to its export-control list, a step it ties to its trade deal with Washington. No start date has been set.

Beige multi-storey office building of Taiwan’s Ministry of Economic Affairs on a sunny street in Taipei
The Ministry of Economic Affairs in Taipei, whose minister set out the planned export controls. Photo: Yu tptw / Wikimedia Commons, CC BY-SA 4.0

In brief

  • Economic Affairs Minister Kung Ming-hsin said Taiwan will put advanced semiconductors and AI servers on its list of controlled export items.
  • Once in force, shipping restricted AI hardware to China without permission would be a criminal offence under the Foreign Trade Act.
  • Kung linked the move to commitments in Taiwan’s Agreement on Reciprocal Trade with the United States, and said some rules would mirror US ones.
  • No implementation date was given. On the same day China published draft export controls of its own covering 23 AI technologies.

Taiwan plans to criminalise unauthorised exports of advanced AI chips and servers to China, bringing its rules closer to the export controls the United States has applied since 2022.

Economic Affairs Minister Kung Ming-hsin told Bloomberg News in an interview on 12 October, published on 16 October, that both product groups will be added to Taiwan’s list of controlled items. After that, sending restricted AI hardware to China would breach the Foreign Trade Act. He did not say when the change will take effect.

Tied to the US trade deal

Kung said some of the new controls will correspond to US measures because of commitments made in the Agreement on Reciprocal Trade, the deal Taipei and Washington signed earlier this year. Bloomberg described the plan as among the strictest steps taken under President Lai Ching-te.

The US has long barred Chinese buyers from acquiring top-end Nvidia and AMD processors without a licence, but US officials say large volumes of hardware have still reached China through grey channels.

Closing a legal gap

Taiwan already requires permits for some sensitive technology exports, but advanced AI chips and servers are not specifically listed. That has left prosecutors relying on other offences. According to Taiwan News, nine people were indicted in August over an alleged plan to move 130 AI servers to China, 74 of which were allegedly shipped through other countries on false paperwork. The charges were breach of trust and document forgery, not export violations.

Taipei is turning a US export rule into Taiwanese criminal law, and Beijing is building a control list of its own.

Beijing’s parallel move

On the same day, China proposed adding advanced AI technologies to its own export-control list, covering 23 items including large language models, agents, chip designs and computing clusters, according to the Taipei Times. Beijing said the measures are not aimed at any particular country.

What to watch

  • The date the new Taiwanese controls take effect and the performance thresholds they use.
  • Any official reaction from Beijing to Taipei’s plan.
  • Whether China’s draft AI export rules are adopted in their current form.

How we got here

  1. Aug 2026Taiwanese prosecutors indict nine people over an alleged AI server smuggling scheme.
  2. 12 Oct 2026Minister Kung Ming-hsin outlines the planned controls in an interview with Bloomberg.
  3. 16 Oct 2026Plan is reported; China publishes draft export controls on AI technologies.

Sources

TradeWar wrote this article from the public reporting and documents below. Figures and statements are attributed in the text.

  1. Taiwan to curb AI chip exports to China as part of US trade deal BusinessMirror (Bloomberg News), 16 Oct 2026
  2. Taiwan to impose strict controls on AI chip exports to China Taiwan News, 16 Oct 2026
  3. China proposes AI export curbs to manage security Taipei Times, 17 Oct 2026