Two people in Taiwan face detention over claims they built military drones out of Chinese-made parts and lied about where they came from — bad news for Taiwan's push to build a trusted homegrown drone industry.

• Prosecutors in Kaohsiung accuse a drone supplier and a partner firm of breaking national security law and committing fraud.
• The parts — chips and flight control boards — were allegedly bought on China's Taobao shopping site, with labels hidden and fake origin papers handed to the military.
• The company won the army contract by bidding well under the expected price, then cut costs with cheap Chinese components to pocket the difference.
• The army caught it during an inspection, stopped payment, and sent the case to prosecutors; the company head is in custody.

Outlook: Expect tighter checks on Taiwan's military suppliers and a ban on this contractor bidding for future work.