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1h ago

U.S. Expands Export Controls to 50%-Owned Subsidiaries of Blacklisted Firms

The move closes a loophole that let blacklisted companies use affiliates to obtain U.S. technology.

People watch two Unitree humanoids fighting in a boxing ring during a tech show in Hangzhou in east China's Zhejiang province on September 28, 2025.
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The Department of Commerce building is seen before an expected report of new home sales numbers in Washington, U.S., January 26, 2022. REUTERS/Joshua Roberts
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Overview

  • The BIS rule automatically applies Entity List and Military End-User restrictions to any entity at least 50% owned by listed companies, with most license requests expected to be denied.
  • The change took effect Monday, with limited 60-day allowances for certain transactions to let companies adjust.
  • Significant minority ownership by a listed firm is now treated as a red flag that triggers enhanced due diligence for exporters.
  • China’s Ministry of Commerce denounced the action as “extremely malicious” and said it would take necessary measures to protect affected companies.
  • Analysts say the measure mirrors the Treasury Department’s “50 percent rule” and could pull thousands of subsidiaries across sectors such as semiconductors, aircraft and medical equipment into U.S. export-control scrutiny.