The US has temporarily halted its recently implemented export controls relating to products with national security implications, allowing 19,000 China-related companies to regain access, according to a calculation by Dow Jones. The rule, introduced on September 30, has now been suspended until November 9, 2026.
The suspension of the rule so soon after implementation makes it look like a negotiation tactic related to the recent Trump-Xi meeting and the US’ desire to regain access to rare earths. US Democrats have voiced concerns that the removal of the limitations from these entities has blindsided Washington’s European allies, with the Dutch government having recently stepped in at chipmaker Nexperia in part because of the new rule.
Effectively pulling the rug out from under the Dutch government will have implications for Europe’s approach to dealing with the US, and makes less effective any coordination from the West in business and geopolitical dealings with China. It sends a message that Trump is willing to use any negotiation tools available to him regardless of the impact that they may have.
From the China side, there are now legitimate questions to be asked about the permanence of any of the threats and impositions made by Trump. But for now the affected businesses, now is an opportunity to buy as much as they possibly can before the situation changes again, and that also means that when the US comes to reinstate these restrictions, it may already be too late.