Trump government is dramatically expanding US sanctions to capture subsidiaries of companies included in blacklist – a strict measure that caused its immediate reaction Chinasince technological giants are already subject to strict American commercial restrictions.
A long -awaited rule published Monday (29.9.2025) by the Ministry of Commerce aims to prevent sanctions – such as Huawei, the leading company in China in the field of artificial intelligence – from using subsidiaries to access limited US products.
Subsidies of at least 50% of companies included in the black list will now face the same restrictions as their parenting companies, according to the office of industry and security office. There are also increased due diligence requirements for missions to entities with significant minority participation from a sanctions company.
Overall, the changes mean that Washington’s license will be required to export certain goods to a much wider range of companies – especially in Russia and China, where the US has intensified the use of black lists to combat Moscow’s war efforts and restriction of the intelligence of the Beijing Sector.
Specifically, the action of the Ministry of Commerce affects two basic penalties: the list of entities, which includes places that are considered to act contrary to the interests of national security or foreign policy, and the list of final users of military equipment, which identifies parts that are considered to be supplied. The rule standardizes the Ministry of Commerce’s approach in the way the Ministry of Finance handles sanctions through the Bureau of Foreign Assets.
Washington has been using the list of entities for years to target individual Chinese technology companies – such as Huawei and Yangtze Memory Technologies – with limitations exceeding national boundaries. This broader campaign, which controls the sales of advanced chips and the tools used for their construction, focuses on concerns that advanced artificial intelligence could provide a military advantage in China.
The latter rules are valid worldwide and do not target any specific country, but have caused immediate criticism from China, which has long accused the US of using export controls as a weapon to promote their financial interests on the guise of national security.
In a statement on the restrictions, the Chinese Ministry of Commerce urged the US to “correct their mistakes” and to stop the “unjustified repression” of Chinese businesses, warning that Beijing would take the necessary measures to protect the interests of Asian companies.