Trump administration expands Chinese export blacklist, restricting chip sales
By willowt // 2025-10-01
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  • The Trump administration has expanded the Entity List to include subsidiaries of blacklisted companies, targeting Chinese entities like Huawei, Hikvision and DJI.
  • The new rule increases the number of companies requiring licenses to receive U.S. goods and services, likely disrupting supply chains.
  • China's Commerce Ministry has strongly criticized the rule, accusing the U.S. of infringing on Chinese enterprises' legitimate rights.
  • The timing of the rule's release, during ongoing trade talks, has raised questions about the U.S.'s true intentions.
  • The move could have significant implications for global trade and international relations, as the U.S. navigates balancing national security with economic ties.
The Trump administration has dramatically expanded its export blacklist, targeting the subsidiaries of companies already sanctioned. This new rule, issued by the Commerce Department, adds thousands of previously unlisted subsidiaries to the Entity List, which restricts the export of certain goods and technologies to entities believed to act against U.S. national security or foreign policy interests. The move, designed to close loopholes, will most significantly impact Chinese entities, such as Huawei, Hikvision and DJI, and will disrupt supply chains globally.

A decade of escalation

This action is the latest in a series of moves by the U.S. to tighten export controls on China, particularly in the realm of advanced technology like semiconductor manufacturing and AI. The seeds of current tensions were sown during Barack Obama’s presidency, which began pushing back against China’s technology sector through export controls. The toughening of these controls gained momentum under the Trump administration, which imposed unprecedented sanctions on tech giants like Huawei. The Biden administration maintained and even expanded these controls, though it faced criticisms from tech companies for overreach.

Impact on global supply chains and trade talks

The timing of the rule’s release, as U.S. and Chinese officials were set to continue trade talks in Spain, is particularly contentious. The move is likely to increase tensions between the two powers. China’s Commerce Ministry has already responded critically, with a spokesperson stating that the measure infringes on the legitimate rights of Chinese enterprises and "severely disrupts international economic and trade order." The rule could exacerbate ongoing trade disruptions, affecting industries from semiconductors to aviation.

Experts weigh in: Balancing national security and global economic ties

Expert analysis suggests that, while the rule will primarily impact Chinese entities, it could also inadvertently disrupt global supply chains. Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, argued that the new regulations are necessary to close loopholes that have allowed companies to circumvent sanctions. However, Doug Jacobson, an international trade attorney, warned that the increased compliance burden could create significant headaches for businesses worldwide. Jacobson emphasized that the new language encouraging companies to apply for export licenses when uncertain about end-user ownership provides some help but also adds complexity to trade negotiations.

Looking forward: Implications for U.S. strategy and global relations

The expansion of the Entity List is a significant step in the U.S. strategy to combat China’s technological advancements, particularly in fields like AI and semiconductors. While the move may help the U.S. secure its national security interests, it risks further straining global trade relations. The Biden administration has already faced pushback from corporations like Nvidia, which argued that similar AI export restrictions could harm their global competitiveness. As the U.S. navigates this complex balancing act, tensions with China, as well as broader global economic ties, may continue to escalate.

The global implications of export controls

The Trump administration's decision to expand the Entity List is part of a broader trend of tightening U.S. export restrictions on China. Although these new controls are aimed at enhancing national security, they risk disrupting global supply chains and damaging trade relations. This move highlights the delicate balance between safeguarding national interests and fostering international cooperation. As the world watches, it is clear that any future trade talks will need to address these issues to avoid further conflict and instability. Sources for this article include: ThNationalPulse.com DailyWire.com Bloomberg.com
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