The Ministry of Commerce responded to reporters' questions regarding the U.S. suspension of the implementation of the export control penetration rule: After one year of suspension, both sides will continue discussions.

A reporter asked: On November 10, Eastern Time, the U.S. Department of Commerce’s Bureau of Industry and Security issued an announcement in the Federal Register, announcing a one-year suspension of the implementation of the export control “piercing rule.” What is the Ministry of Commerce's comment on this? Will the suspension be extended after one year?

Answer: China has noted that the U.S. has announced the suspension of the implementation of the export control “piercing rule” from November 10, 2025 to November 9, 2026. During this period, entities on the U.S. export control “Entity List” and other sanctions lists will not have their affiliates, in which they hold more than 50% shares, subject to additional equivalent export control sanctions due to the rule. This is an important measure for implementing the consensus reached in the U.S.-China Kuala Lumpur trade consultations. Arrangements after the one-year suspension will be further discussed between both sides.

China is willing to work with the U.S. under the principles of mutual respect and equal consultation to strengthen dialogue and exchanges, properly manage differences, and jointly create favorable conditions for promoting mutually beneficial cooperation between enterprises of the two countries and ensuring the security and stability of global industrial and supply chains.

Source: Ministry of Commerce News Office, original title: "MOFCOM spokesperson answers reporter's questions on the U.S. suspension of the implementation of the export control piercing rule"

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