The US has temporarily halted a sweeping export control rule, which had vastly expanded trade blacklist restrictions and swept in thousands of Chinese firms, reports Caixin. In an announcement Monday, the US Department of Commerce’s Bureau of Industry and Security (BIS) said it would pause its so-called 50% ownership rule designed to limit exports to entities that are majority owned by blacklisted companies until Nov. 9, 2026.
Introduced on Sept. 30, the 50% ownership rule automatically applied the same export control restrictions to any firm at least 50% owned by an entity on the US’ Entity List.
The rule had dramatically expanded the US’ trade blacklist restrictions, with the number of affected Chinese entities jumping from over 1,000 to nearly 20,000, according to a calculation by Dow Jones.