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Good day. The Trump administration said it is clamping down on companies that pose national-security risks by adding them to a trade blacklist, a move that threatens hundreds of Chinese companies and marks the latest salvo in the U.S.-China tech race.
Under the new rule, subsidiaries of companies that are on a Commerce Department blacklist known as the entity list would also be subject to trade restrictions. The goal is to close what the administration sees as a loophole that lets companies create subsidiaries to get around the entity list sanctions. If a company on the list is the majority owner of another firm, that business will now also be subject to the same restrictions.
The change is a broad move potentially affecting thousands of companies globally, but China’s tech sector is seen by many industry executives as the main target. Chinese companies such as Huawei Technologies have many subsidiaries and global business partners, making it challenging for the U.S. to completely cut them off from domestic technology.
The U.S. has repeatedly expressed concern about Chinese technology companies in recent years, citing worries over their products' potential to be turned into surveillance devices, or introduce vulnerabilities into critical infrastructure.
Read our full story here.
Also today:
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Harrods discloses data breach.
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JLR resumes some manufacturing.
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CISA furlough projections.
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