China

出口管制的变革：美国商务部BIS 50%规则的复杂性及影响

AnJie Broad Law Firm | Local Language | AcademicThink | Dec. 12, 2025 | Regulation

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) implemented a significant export control amendment on September 29, 2025, known as the BIS 50% rule. This rule extends export control restrictions not only to entities listed on U.S. restrictive lists such as the Entity List, Military End-User List (MEU List), and certain OFAC SDN lists but also to their foreign affiliates that are directly or indirectly 50% or more owned by any listed entity. The rule seeks to close loopholes where listed entities could circumvent export restrictions by establishing overseas affiliates. The case of Anshi Holdings, a Dutch subsidiary of the Chinese company Wingtech Technology, demonstrates the rule’s impact, as their assets were frozen due to Wingtech's placement on the U.S. Entity List.

The BIS 50% rule broadens the scope of export license requirements, license exceptions, and review policies to include these 50% or more owned foreign affiliates, applying the most restrictive measures where multiple restrictive list entities own stakes. It also affects the Foreign-Direct Product (FDP) rules, expanding export controls to foreign-produced items involving such affiliates. The rule enforces a strict liability regime obligating exporters, reexporters, and transferors to verify ownership of foreign entities, with legal consequences for non-compliance. BIS also issued a Temporary General License (TGL) permitting certain transactions involving these affiliates until December 1, 2025, and has suspended the 50% rule from November 10, 2025, to November 9, 2026, following U.S.-China consultations.

Prior to the BIS 50% rule, export controls were only applied to listed entities and their legally non-distinct affiliates under the “Legally Distinct Standard,” which allowed listed parties to circumvent restrictions through complex ownership structures. The new rule aggregates ownership stakes across multiple listed entities and includes indirect ownership, thereby significantly expanding the regulatory net. However, it excludes certain entities, such as those on the Unverified List or Denied Persons List, and U.S. entities, and has exceptions for addresses related to some Entity List entries.

The implementation of the BIS 50% rule presents wide-ranging compliance challenges globally across various industries, particularly impacting Chinese semiconductor companies. Exporters must enhance due diligence procedures, modify compliance policies, update contractual clauses, and integrate more sophisticated ownership screening capabilities. The rule also necessitates increased investment in export control compliance, especially among small and medium enterprises and financial institutions less accustomed to export control measures than economic sanctions. Companies are urged to conduct risk assessments and prepare contingency plans in anticipation of the rule’s potential reinstatement after the suspension period ends in November 2026.

China Daily | English | News | Dec. 12, 2025 | UndeterminedEnergy Prices

In 2025, China has significantly expanded its power-trading market, allowing enterprises to purchase electricity at market-based rates, which enhances cost control and accelerates the transition to cleaner energy. For example, Xuzhou Shanshan Outlet Plaza reduced its monthly electricity bills by over 70,000 yuan ($9,910) by buying power through the market, while also benefiting from sourcing renewable energy to support low-carbon supply chains. Approximately 23,900 industrial and commercial businesses in Xuzhou participated in the market in 2025, with market-based power consumption reaching 10.2 billion kilowatt-hours in the first half of the year, saving users around 40 million yuan monthly.

China's unified national power market, launched in 2025, facilitates long-distance transmission of renewable energy, such as hydropower from Yunnan and Sichuan provinces, to energy-demanding industrial regions like the Yangtze River Delta. Market-traded electricity increased from 1.1 trillion kWh in 2016 to 6.2 trillion kWh in 2024, accounting for 63 percent of total electricity consumption. The State Grid's trans-provincial transmission capacity reached 370 million kilowatts by November, promoting efficient resource allocation and reliable energy supply amidst varying regional energy endowments.

Jiangsu province has aggressively promoted green power trading, boosting the trading volume from 1.37 billion kWh in 2021 to 20.34 billion kWh in 2024, resulting in reductions of 6.24 million metric tons of standard coal consumption and 15.56 million tons of carbon dioxide emissions. Concurrently, China's combined wind and solar installed capacity surged from 530 million kW in 2020 to 1.68 billion kW by mid-2025, growing at an average annual rate of 28 percent. The growing demand for green electricity includes trade fairs, conferences, and exporters aiming to enhance carbon neutrality and global competitiveness amid increasing carbon footprint awareness.

Peoples Daily | English | News | Dec. 12, 2025 | Geopolitical Conflict and Disputes

A spokesperson from the Taiwan Affairs Office of the State Council criticized recent statements by Taiwan leader Lai Ching-te and deputy Hsiao Bi-khim about relocating Taiwan Semiconductor Manufacturing Company (TSMC) production capacity overseas. The comments highlighted the Democratic Progressive Party (DPP) authorities’ role in undermining Taiwan's industrial base.

Chen Binhua argued that what Lai described as efforts to support TSMC's global presence in the United States, Japan, and Europe, ostensibly to promote "global prosperity and progress," actually represents the loss of Taiwan’s key industrial assets. The move was characterized as damaging to Taiwan's industries, companies, and the livelihoods of ordinary Taiwanese people.