The United States expands its export blacklist, covering its subsidiaries

The United States is expanding its trade blacklist to make it more difficult for some companies' subsidiaries and affiliates to obtain U.S. products and technology, and this measure is expected to have an impact on Chinese companies and others.

This change involves the parties on the "physical list", where companies on the list cannot obtain American goods and technology without government authorization.

Under the new rules, at least one or more subsidiaries with a physical holding of more than 50% of the shares listed on the list will be automatically restricted by the list.

Although this change is widely applicable to global enterprises, due to the recent U.S. measures on many Chinese companies, the impact of this change on Chinese enterprises may be particularly significant. The new regulations will take effect tomorrow, but the company may still submit comments or request temporary modifications.

The United States is here at a time when Washington and Beijing are engaging in trade and economic debates over mutual tax collection and other issues. The "Practical List" aims to combat companies and other entities that are considered threatening to U.S. national security or foreign policy interests.

A spokesperson for the Ministry of Commerce of China said in a statement that the development has been noticed and called it "malignant" behavior infringed on the legal rights of the company. The spokesperson also said that this rule "is another typical example of the United States' over-expanding national security concepts and utilizing export controls", and that China will take necessary measures to protect the legitimate rights and interests of its companies.

In recent years, U.S. officials have felt worried that U.S. technology has been used to support Chinese companies because of the competition between two major global economies.

The U.S. Department of Commerce announcement stated that the change aims to "redirect the risk of transfer", such as some newly established foreign companies to avoid restrictions by setting up new companies. The announcement pointed out that the existing standards do not include entities that are not explicitly included in the "physical list" regardless of whether they have any relationship with the target company.