"US Lobby Group Warns Expanding Export Controls to Chinese Subsidiaries Is a 'Self-Defeating Move'"

Reuters Obtains Letter Sent to Trump

Donald Trump, President of the United States, held a press conference before boarding 'Marine One' on the 30th of last month (local time). Photo by UPI

A lobbying group representing major U.S. corporations has urged the Donald Trump administration to withdraw its expanded blacklist regulations, calling the inclusion of Chinese corporate subsidiaries in export controls a "self-defeating move."

According to Reuters on the 20th, the National Foreign Trade Council (NFTC) sent a letter to President Trump, which the news agency obtained on the 3rd (local time). The NFTC is a Washington, D.C.-based lobbying organization whose board includes companies such as Oracle, Amazon, and ExxonMobil.

In the letter, the NFTC singled out the "Affiliates Rule"-a measure that prohibits U.S. companies from exporting goods or technology to firms in which a sanctioned company holds a partial stake-as a regulation that should be withdrawn.

The NFTC pointed out that this regulation "would result in the immediate suspension of billions of dollars in U.S. exports, which runs counter to your (President Trump's) intention to reduce the trade deficit and expand U.S. global exports."

The group further warned that the regulation would prompt other countries to turn to non-U.S. products, stating, "By removing U.S. links from supply chains, countries around the world, including China, will weaken U.S. national security."

Previously, on the 30th of last month, the U.S. Department of Commerce published the "Affiliates Rule" in the Federal Register, stipulating that companies in which a blacklisted entity holds more than a 50% stake would automatically be subject to export controls. The rule is set to take effect 60 days after its publication.

Previously, even if a company was a subsidiary of a blacklisted firm, it was exempt from export controls unless it was itself on the list. However, due to concerns that companies such as Huawei in China were circumventing regulations by importing sensitive technologies through subsidiaries, the rule was expanded to include subsidiaries.

The Chinese Ministry of Commerce has expressed "strong opposition" to the U.S. measures, urging the United States to immediately correct its wrongful actions and to stop the "unjust suppression of Chinese companies."

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