China announced on Friday that it has added 11 U.S. companies, including drone manufacturer Skydio Inc., to its unreliable entity list. This move comes as a response to these firms’ alleged engagement in military technology cooperation with the island of Taiwan, which China says undermines its national sovereignty and security.
According to a statement from China’s Ministry of Commerce, companies like Skydio and BRINC Drones have disregarded China’s strong opposition by participating in what it calls “so-called military technology cooperation” with the island of Taiwan. The ministry emphasized that these actions have seriously affected China’s national interests.
The list of affected companies includes Skydio Inc., BRINC Drones, Inc., Red Six Solutions, SYNEXXUS, Inc., Firestorm Labs, Inc., Kratos Unmanned Aerial Systems, Inc., HavocAI, Neros Technologies, Domo Tactical Communications, Rapid Flight LLC, and Insitu, Inc.
As a result of being added to the list, these companies are prohibited from engaging in import and export activities related to China and from making new investments within the country.
The Ministry of Commerce noted that China exercises prudence in matters concerning the unreliable entity list, targeting only a very small number of foreign entities that it believes harm China’s national security. “Honest and law-abiding foreign entities have nothing to worry about,” the ministry added.
Despite this action, China reiterated its openness to global business. “The Chinese government continues to welcome companies from around the world to invest and operate in China,” the ministry stated. It pledged to provide a stable, fair, and predictable business environment for law-abiding foreign enterprises operating in the country.
