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US Widens Reach of Export Blacklist to Cover Subsidiaries

The United States is widening the reach of its trade blacklist, making it harder for subsidiaries and affiliates of certain companies to access American products — a move set to hit Chinese businesses, among others.

The Department of Commerce’s notice said the latest shift aims to “address diversion concerns,” such as the formation of new foreign companies to evade restrictions.

Under the new rule, subsidiaries that are at least 50% owned by one or more listed entities will also be automatically subject to the list’s restrictions.

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