Overview

• The rule automatically applies Entity List and Military End-User restrictions to any entity at least 50 percent owned by a listed company.
• Exporters must treat significant minority ownership by listed entities as a red flag that triggers enhanced due diligence.
• The restrictions take effect 60 days after publication in the Federal Register.
• Analysts say the change could pull thousands of subsidiaries in nearly 100 countries into U.S. scrutiny, affecting sectors such as aircraft, semiconductors and medical equipment.
• China’s Commerce Ministry condemned the action as extremely egregious, and trade lawyers warned companies may restructure to evade the controls.