Except the PRC did provide an explanation for why they sanctioned TechInsights.
"Source: Press Office of the Ministry of Commerce 2025-10-09 16:05
The Ministry of Commerce spokesperson answered reporters' questions on the measures related to the Unreliable Entity List
Question: This time, China has once again activated the "Unreliable Entity List" and imposed sanctions on foreign entities such as Anti-Drone Technology Companies, TechInsights and its branches. What are your considerations?
A: In recent years, foreign entities such as Anti-Drone Technology Companies, TechInsights, and their affiliates
have, despite China's strong opposition, engaged in so-called military and technological cooperation with Taiwan, made detrimental remarks about China, and assisted foreign governments in suppressing Chinese companies, seriously undermining China's national sovereignty, security, and development interests. China will pursue their illegal actions in accordance with the law, in accordance with the Foreign Trade Law of the People's Republic of China, the National Security Law of the People's Republic of China, the Anti-Foreign Sanctions Law of the People's Republic of China, and other laws, as well as Article 2 of the Unreliable Entity List.
China has always handled the Unreliable Entity List (UEL) issue with caution, targeting only a very small number of foreign entities that pose a threat to national security. Honest and law-abiding foreign entities have nothing to worry about. The Chinese government, as always, welcomes investment and business in China and is committed to providing a stable, fair, and predictable business environment for law-abiding foreign enterprises operating in China."
Huawei was placed on a U.S. trade-restriction list in 2019 for national security purposes.
www.reuters.com
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TechInsights informed TSMC about the chip in advance of publishing its findings in a report, the person said, and the chip company notified the U.S. Department of Commerce.
TSMC said in a statement on Monday that it had proactively communicated with the Commerce Department regarding the matter."
The drone companies were selling military drones to Taiwan. For example:
TAIPEI, Taiwan, [September 18, 2025] — AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), a global leader in all-domain defense technologies, today...
www.avinc.com
I guess AeroVironment will have to do their drones without a custom supply of Chinese lithium ion batteries and permanent magnet electric motors.
BAE Systems is also providing military-technical services to Taiwan:
Taoyuan-based Champion Auto Co. on Friday signed a memorandum of understanding (MOU) with BAE Systems to provide logistical support and maintenance for Taiwan's military equipment.
focustaiwan.tw