U.S. Tightens Export Controls to Cover Subsidiaries of Blacklisted Firms
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China’s Ministry of Commerce has denounced the move.
The U.S. government is tightening its export controls, extending restrictions on blacklisted companies to any subsidiaries in which they hold a majority stake.
Any company that is 50% or more owned by one or more of the entities on the U.S.' "Entity List" will be subject to the same export restrictions, according to a new rule issued on Sept. 29 by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS).
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- The U.S. expanded export controls to cover any company 50% or more owned by blacklisted entities, closing a major loophole, effective September 29.
- Over 1,300 Chinese-affiliated entities are currently on the Entity List, and China has strongly condemned the expanded restrictions.
- The rule now mirrors U.S. Treasury standards and includes due diligence warnings for companies with significant ties to listed entities.
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Who’s Who
- Chinese companies
- The U.S. government's expanded export controls are widely perceived as targeting Chinese companies. The Entity List has seen increasing use against Chinese entities since 2018, with over 100 Chinese entities added this year alone. China's Ministry of Commerce has strongly condemned these actions, calling them an "unreasonable suppression of Chinese companies" and vowing to protect their legitimate rights.
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