US Plans Wider China Tech Sanctions With Subsidiary Crackdown

The Trump administration plans to broaden restrictions on China’s tech sector with new regulations to capture subsidiaries of companies under US curbs.

Officials are drafting a rule that would impose US government licensing requirements on transactions with companies that are majority-owned by already-sanctioned firms, according to people familiar with the matter.

Some of China’s biggest semiconductor design and fabrication firms are subject to US sanctions via the so-called Entity List, from Huawei Technologies Co. to Yangtze Memory Technologies Co., as part of a far-reaching US campaign to rein in a geopolitical rival’s technological ascent. The goal of the new ...