Lawmaker Eyes 50% Requirement for BIS Entity List
Rep. Michael McCaul, R-Texas, chairman emeritus of the House Foreign Affairs Committee, said Nov. 20 that he plans to introduce a bill to place subsidiaries on the Bureau of Industry and Security’s Entity List if they're owned 50% or more by companies on that list.
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At a joint hearing of two Foreign Affairs subcommittees, McCaul said his legislation is aimed at closing an export control loophole that has allowed China to obtain advanced AI chips from U.S. companies. One way Chinese firms easily exploit that loophole is by renaming themselves, he said.
His proposal would be similar to a bill Rep. Keith Self, R-Texas, introduced in September (see 2510010011), as well as the BIS Affiliates Rule, which the Trump administration recently suspended for a year as part of a trade deal with China (see 2510300024).