US Hits Sanctioned Firms’ Subsidiaries, Drawing Chinese Rebuke

The Trump administration is dramatically expanding US sanctions to capture subsidiaries of blacklisted companies — a crackdown that drew a swift rebuke from China, where key tech giants are already subject to stringent American trade curbs.

A long-awaited rule published Monday by the Commerce Department seeks to prevent sanctioned companies – such as Huawei Technologies Co., China’s AI chip champion – from using affiliates to access restricted US goods.

Subsidiaries that are at least 50% owned by blacklisted companies will now face the same curbs as their sanctioned parents, according to the measure from the agency’s Bureau of ...