萬國法律事務所

Taiwan's Executive Yuan passed a Draft of the National Defense Development Act (Draft) on January 17, 2019.  The Draft contains three key points, as set out below, and establishes a principle that major components of military products should not be imported from China, Hong Kong, and or Macao (the Principle).
 
First, to avoid leaking of confidential data, the companies responsible for manufacturing and conducting maintenance and research of military products must be evaluated and reviewed, and the facilities and personnel of such companies must also be investigated by the Taiwan Government.
 
Second, the Government shall subsidize development of certain important military products to encourage Taiwan companies to be willing to invest in the defense market.
 
Third, to improve military technologies, the Government shall cooperate with private entities to cultivate professionals in such technologies.
 
The Ministry of National Defense has indicated that whether products manufactured by Taiwan companies in China will be prohibited from import will depend on further investigation by the Government.