Expanding US Sanctions Target Chinese Tech Subsidiaries for Stricter Regulations

The Trump administration is preparing to expand restrictions on China’s technology sector. New regulations are in the works that would require U.S. government approval for transactions involving companies that are majority-owned by firms already under U.S. sanctions.

Officials familiar with the matter said the proposed rule aims to strengthen existing curbs by targeting the subsidiaries of blacklisted Chinese firms. This move is part of ongoing efforts by the U.S. to limit China’s access to advanced technology and sensitive U.S. components.

The rule is still being drafted and would require companies connected to sanctioned entities to obtain licenses before engaging in any business with U.S. firms. This measure further tightens control over the supply chain and seeks to close any loopholes that allow restricted Chinese companies to continue operations through affiliates.

The new approach marks an escalation in the U.S.-China tech tensions, as Washington continues to address concerns over national security and intellectual property theft. Once implemented, the regulation could impact a wide range of Chinese firms already facing limitations under various executive orders.

Trump administration, China tech restrictions, U.S. sanctions, licensing requirement, Chinese subsidiaries