The Commerce Department wants to expand export controls to majority-owned subsidiaries of Chinese companies. That could trigger cascading effects — and challenges.
A Huawei store. Credit: JHVEPhoto, Shutterstock
A planned rule by the Trump administration could lead to a dramatic rise in the number of Chinese companies subject to U.S. export controls — and a big headache for American firms selling products into China.
Right now, only companies explicitly named on the Commerce Department’s trade blacklist, known as the ‘Entity List,’ face export controls, limiting what American companies can legally sell to them without a license. But the new, so-called ‘50 percent rule’ would impose
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