Ahead of Shenzhen trade talks, US holds off blacklist rule that angered Beijing

South China Morning Post · Alice Li · 2026-11-06 13:00 UTC

Suspension of rule affecting overseas units of blacklisted firms extended in what analysts say is an effort by the US to seek stability.

Ahead of a new round of bilateral trade talks, the US has extended the suspension of an expanded trade blacklist that helped inflame tensions with China last year and could subject overseas subsidiaries of Chinese companies to greater scrutiny.

The US Bureau of Industry and Security (BIS) issued a final rule on Thursday extending the suspension of its 50 per cent affiliate rule until January 10, when the current US-China trade truce is also set to expire.

If implemented, the measure would extend US restrictions to any company that is at least 50 per cent owned by firms on the US Entity List or Military End-User List, which include organisations that Washington considers national security risks.

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