Taiwan's military says a drone supplier used banned Chinese components, a security embarrassment that raises fresh doubts about how well defense purchases are policed.

• The head of a tech company that won an army drone contract has been detained by prosecutors.
• The firm is accused of building training drones with Chinese-packaged parts, which the contract banned outright.
• Investigators say fake paperwork was used to slip the parts past inspection.
• The army caught the problem during delivery checks, withheld payment, and referred the case for prosecution.
• The company now faces being barred from bidding, having its contract cancelled, and paying damages.

Outlook: The criminal case continues, and expect tighter checks on where parts in Taiwanese defense gear actually come from.