Chinese Companies Fraudulently Use Taiwanese Brand to Evade Sanctions and Supply Russian Military

Chinese companies supplying servo drives for Russia’s planning modules and Shahed UAVs have been found to unlawfully use the name of the Taiwanese company TRC to avoid sanctions, according to an investigation by public activist Vadym Labas.

Labas reported that following the publication of information linking Taiwan’s TRC to the supply of critical components to Russia, the investigation gained support from sanctions experts and members of the Taiwanese public.

The investigation revealed that while TRC’s name appears in procurement documents, the actual Taiwanese company has no connection to these parts. Instead, the servo drives were traced back to the Chinese manufacturer KST Digital Technology Limited.

KST’s HS20 servo drive, which serves as a key component in control systems for planning modules, is openly listed on the company’s official website. The same company also supplies servo drives used in Shahed drones, produced in Russia.

To bypass international sanctions, KST reportedly employs a multi-step masking scheme. Initially, its products are sold to a fictitious Chinese manufacturer named Kaiffeng Zhendaqian Technology (KZT).

KZT then formally transfers the products to another Chinese entity, UNIHUI INTERNATIONAL LIMITED, rebranding them as TRC components in the process.

Published procurement documents show that while the manufacturer’s name changes during transfers between intermediaries, the model name of the servo drive remains consistent. The scheme continues through additional intermediaries, such as Shenzhen Biosen Bio-Tech, before reaching Russian entities.

The parts ultimately arrive at companies like “Omni Trade” and “Dymir Trade.” The latter is identified as a newly created clone of “Dymir,” which is already under international sanctions. From these firms, the components are delivered to “TRV-Engineering,” a contractor for Russia’s Tactical Missiles Corporation.

Labas notes that this dual-layered rebranding scheme represents a novel and complex approach to sanctions evasion. The method has also been identified in the supply of other critical components for Russia’s defense industry, often involving the unauthorized use of TRC branding.

Earlier, on December 31, Chinese President Xi Jinping exchanged New Year greetings with Russian leader Vladimir Putin, emphasizing that China and Russia move forward “hand in hand” on a path of non-alliance, non-confrontation, and not targeting any third party, according to Xinhua.