U.S. Closes Subsidiary Loophole in Chinese Chip Blacklist Rules

The Trump administration's new export control rule extends blacklist status automatically to subsidiaries of targeted Chinese semiconductor companies, eliminating a structural workaround that allowed conglomerates to preserve foreign access through nominally independent entities. The change tightens enforcement against layered corporate structures long used by Chinese chipmakers to maintain supply chains. Compliance complexity for multinational technology companies sourcing across suppliers will increase substantially.