The US action aims to stop sanctioned companies – including technology champion Huawei, memory chip giant YMTC and drone maker DJI – from evading export controls by funnelling restricted technologies through their subsidiaries.
The new rule “closes a significant loophole,” the US Department of Commerce said, by making any subsidiary at least 50% owned by a firm already on the export controls list face the same restrictions as the parent company – a shift that could affect tens of thousands of companies.
