"U.S. Blacklist Expansion to Impact Chinese Subsidiaries, Raising Trade Tension Concerns"

"It May Be a Move by the U.S. to Gain Leverage in Trade Negotiations"

Concerns are being raised that the expansion of the U.S. government's "trade blacklist" could impact overseas subsidiaries of Chinese companies, potentially escalating trade tensions between the United States and China.

The Hong Kong-based South China Morning Post (SCMP) reported on September 30 (local time) that experts have expressed these views in relation to the recent announcement by the U.S. Department of Commerce's Bureau of Industry and Security (BIS), which introduced new regulations requiring subsidiaries in which a blacklisted company holds more than a 50% stake to also be subject to export controls.

The U.S. Department of Commerce has required government approval or effectively banned exports of dual-use technologies that could be diverted for military purposes to foreign companies deemed a threat to national security. Until now, however, these companies have been able to circumvent regulations by establishing subsidiaries.

This measure comes amid the U.S.-China trade war, with the leaders of both countries expected to meet face-to-face during the Asia-Pacific Economic Cooperation (APEC) summit to be held in South Korea at the end of this month. Steven Olson, a researcher at the ISEAS-Yusof Ishak Institute in Singapore, said, "Companies on the blacklist have effectively circumvented regulations by using subsidiaries, and if the new rules are effective in closing these loopholes, it will be painful for the affected companies." He added that this measure is "a corrective action that should have been taken long ago" and that "the repercussions could be significant."

Chen Zhiwu, a professor at the University of Hong Kong, also interpreted the new regulation as meaning that a broader interpretation could result in more Chinese companies being added to the list.

Chim Lee, a researcher at the Economist Intelligence Unit (EIU), noted that the fifth round of high-level U.S.-China talks is expected to take place soon, and suggested that the latest U.S. measure may be aimed at gaining leverage in the negotiations. He said, "All actions by both sides can be seen in the context of wanting to secure as many bargaining chips as possible in trade negotiations," and predicted that "China could retaliate by further tightening export controls on critical minerals."

This content was produced with the assistance of AI translation services.