Three Shipbuilding Companies Included! Ministry of Commerce: Export of Dual-Use Items to Eight Taiwan Entities Banned

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Three Shipbuilding Companies Included! Ministry of Commerce: Export of Dual-Use Items to Eight Taiwan Entities Banned

Three Shipbuilding Companies Included! Ministry of Commerce: Export of Dual-Use Items to Eight Taiwan Entities Banned

On July 9, the Ministry of Commerce announced the inclusion of eight entities from the Taiwan region in its export control list, including three shipyards: CSBC Corporation, Jong Shyn Shipbuilding, and Lungteh Shipbuilding.

The announcement stated that, in accordance with relevant laws and regulations such as the “Export Control Law of the People’s Republic of China” and the “Regulations on the Export Control of Dual-Use Items of the People’s Republic of China,” the decision was made to safeguard national security and interests and fulfill international non-proliferation obligations. The eight entities from the Taiwan region, including Aerospace Industrial Development Corp., have been added to the export control list, with the following measures implemented:

1. The export of dual-use items to the aforementioned eight entities is prohibited, and any ongoing export activities must cease immediately.

2. In exceptional cases where exports are necessary, exporters must apply to the Ministry of Commerce for approval.

The announcement takes effect immediately upon its release.

The eight entities are Aerospace Industrial Development Corp., GEOSAT Aerospace & Technology Inc., National Chung-Shan Institute of Science & Technology, JC Technology Inc., CSBC Corporation, Taiwan, Jong Shyn Shipbuilding Co., Ltd, Lungteh Shipbuilding Co., Ltd, and Gong Wei Co., Ltd.

Three Shipbuilding Companies Included! Ministry of Commerce: Export of Dual-Use Items to Eight Taiwan Entities Banned

CSBC Corporation is one of the flagship enterprises in Taiwan’s shipbuilding industry. Established in 1973, it is the largest and only major shipyard in the region, with its major shareholder being the Ministry of Economic Affairs of Taiwan. CSBC operates shipyards in Kaohsiung and Keelung, with the Kaohsiung facility featuring a million-ton-class dock. The company’s business includes commercial shipbuilding and repair, naval vessel construction, and diversification into offshore wind power and petrochemical infrastructure.

In 2024, CSBC’s revenue breakdown was 61% from naval vessel construction, 8% from ship repair, 7% from commercial shipbuilding, 21% from machinery manufacturing, and 3% from other projects. As of the end of 2024, CSBC held orders for 5+2 commercial ships (with an additional 12+4 container ship orders signed in January 2025) and 14 naval and official vessels, with delivery schedules extending to October 2031 for Kaohsiung and October 2027 for Keelung.

Three shipyards included! Ministry of Commerce bans exports of dual-use items to eight Taiwan entities

Jong Shyn Shipbuilding, located in Qijin District, Kaohsiung, was founded in 1973 and is currently the largest privately-owned shipyard in Taiwan. Over its 50-year history, the company has built over 500 new vessels and performed more than 900 ship modifications, making it the region’s leading producer of steel and aluminum ships. Its portfolio includes patrol vessels, cargo ships, passenger ships, product/chemical tankers, research vessels, ultra-low-temperature freezer ships, yachts, and fishing boats, as well as contracts for major naval destroyer repairs.

In 2018, Jong Shyn secured a NT$21.5 billion (approximately RMB 5.283 billion) contract to build 81 patrol vessels for Taiwan’s Coast Guard Administration, with 23 still under construction and expected to be delivered by 2027. Additionally, the company holds orders for two light patrol vessels from Taiwan’s Ministry of National Defense (scheduled for 2026 delivery) and seven tugboats for Taiwan International Ports Corporation.

Three shipyards included! Ministry of Commerce bans exports of dual-use items to eight Taiwan entities

Founded in 1976, Lungteh Shipbuilding is a privately-owned shipyard headquartered in Taipei’s Neihu District, with seven facilities across Yilan County. Its largest facility, located in Su’ao Port, spans 61,000 square meters and produces 1-10 vessels annually, each up to 70 meters in length, including patrol boats, interceptors, rigid inflatable boats, fireboats, pilot boats, ferries, and research vessels.

In response to the export control listing, CSBC and Jong Shyn Shipbuilding stated the impact would be “limited.” CSBC noted that submarines and Coast Guard vessels primarily rely on European and American supply chains, while commercial ships depend on Japanese and Korean suppliers, with minimal reliance on mainland China. Jong Shyn emphasized that its naval and Coast Guard vessels, adhering to the “Taiwan ships built in Taiwan” policy, already prohibit components and equipment from mainland China.

Lungteh Shipbuilding reported that its military-focused operations remain unaffected, as its military shipbuilding division sources no materials from mainland China. For civilian projects, only a minimal portion of materials come from the mainland, with alternative suppliers available, resulting in negligible impact.