Exporters now face January 10, 2027 as the date the 50% ownership rule can resume covering affiliates of listed entities, unless BIS extends the stay again.
The U.S. Bureau of Industry and Security (BIS) has extended to January 10, 2027, its suspension of the rule that widened export controls to companies owned by blacklisted parties, Nikkei Asia reported on November 6. Nikkei described the delay as a consequence of Washington and Beijing prolonging their trade truce. The one-year pause was set to end on November 9, 2026.
The measure is a final rule, document 2026-22793, which BIS published for public inspection ahead of its scheduled Federal Register publication on November 9. It leaves the original rule untouched and only moves the date on which that rule would take effect. BIS says it did not consider public comments on the underlying rule and will weigh them in later rulemaking. It also says the action is not significant under Executive Order 12866 and that it expects no change to the government’s information-collection burdens, such as the Simple Network Application Process and Multipurpose Application Form. The agency cites section 1762 of the Export Control Reform Act of 2018, which lets it issue such changes as a final rule without prior notice and comment.
No Chinese government reaction to the extension appeared in the sources reviewed. The Ministry of Commerce (MOFCOM) did comment on the original suspension a year ago, and its position then frames today’s decision.
The extended pause covers a rule that reaches beyond listed companies
The suspended measure is the interim final rule titled "Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities," known as the Affiliates Rule or the 50% rule. Baker McKenzie summarizes its effect. The Affiliates Rule applies Entity List license requirements to foreign entities that are 50% or more owned by listed parties. The same applies to the Military End-User List and certain sanctions lists, and ownership counts whether direct, indirect, individual or in aggregate.
BIS imposed a one-year suspension that took effect on November 10, 2025, as part of the U.S.-China trade truce known as the Busan Agreement, per Baker McKenzie. In its notice, BIS says the amendments to five parts of the Export Administration Regulations are "further stayed" until January 10, 2027, effective November 9, 2026. BIS describes the action as a final rule with a stay, issued without notice and comment under the Export Control Reform Act of 2018.
The truce extension left the rule’s status unclear for weeks
The route to this decision was indirect. Miller Canfield lawyers wrote in the National Law Review on October 2 that Treasury Secretary Scott Bessent had announced on September 23 that the two countries agreed to extend the Busan Agreement by two months, through January 10, 2027. At that point, the lawyers wrote, BIS had not published a notice, and the U.S. government had not said explicitly that the extension covered the Affiliates Rule. Absent action, the rule was due to resume on November 10, they wrote.
Baker McKenzie says Bessent’s announcement did not mention the Affiliates Rule, which caused confusion. The new BIS rule settles the question for now. Baker McKenzie advises companies to keep ownership screening and due-diligence procedures ready in case the rule returns without a further extension.
MOFCOM’s last public comment came in November 2025. According to People’s Daily, a ministry spokesperson said China had "taken note" of the U.S. announcement, called the suspension an important step in implementing the economic and trade consensus from the Kuala Lumpur consultations, and said both sides would keep discussing arrangements after the one-year pause. The People’s Daily page is Chinese state media.
January 10 becomes the next decision point
A two-month extension gives negotiators a short window. If the truce is extended again, BIS would need to issue another stay before January 10, 2027, or the rule would take effect. Baker McKenzie notes that the rule is suspended, not withdrawn.
Two developments would change the picture: a further BIS stay published before January 10, and any MOFCOM comment on the current extension.