{
  "id": 18503335,
  "title": "Ahead of Shenzhen trade talks, US holds off blacklist rule that angered Beijing",
  "url": "https://urgent.news/2026/11/06/ahead-of-shenzhen-trade-talks-us-holds-off-blacklist-rule-that",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-06T13:00:10.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/economy/policy/article/3373520/ahead-shenzhen-trade-talks-us-holds-blacklist-rule-angered-beijing"
  },
  "original_language": "en",
  "account": "Ahead of upcoming bilateral trade talks, the United States has decided to indefinitely suspend an expanded trade blacklist that strained relations with China last year and could have subjected overseas subsidiaries of Chinese firms to heightened scrutiny. The Bureau of Industry and Security (BIS) of the US issued a final ruling on Thursday, extending the suspension of its 50 percent affiliate rule until January 10, coinciding with the expiration of the current US-China trade truce. The rule would have imposed restrictions on any entity holding at least 50 percent ownership in companies listed on the US Entity List or Military End-User List, which comprise organizations deemed national security threats by Washington. The extension occurred just before a new series of US-China trade discussions in Shenzhen later in the month, where Chinese Vice-Premier He Lifeng was anticipated to meet with US Treasury Secretary Scott Bessent. Both nations are eager to preserve stability in their bilateral ties, despite the fragile nature of their current relationship. The talks are expected to be followed by a meeting between Chinese President Xi Jinping and US President Donald Trump during the Apec Economic Leaders’ Meeting in Shenzhen on November 18 and 19. According to Chim Lee, a senior analyst at the Economist Intelligence Unit, the personal relationship between Trump and Xi, along with the prestige associated with upcoming Apec and G20 summits, is likely to prevent the Trump administration from implementing the most extreme measures against China. However, this dynamic has been influenced by the recent US midterm elections, in which the Democratic Party gained control of Congress, potentially raising concerns about the administration's ability to make lasting commitments in negotiations with Beijing. While Washington did not explicitly target any specific nation, the 50 percent affiliate rule was widely perceived to be directed mainly at China due to the substantial number of Chinese companies potentially affected. Introduced in September of the previous year, the rule exacerbated already tense US-China trade relations, prompting Beijing to retaliate with an expansive expansion of export controls on rare earth elements, essential raw materials for various high-tech products. Following a meeting between Xi and Trump in September, the two sides agreed to reduce tariffs on products worth USD 30 billion each, although the tariff reductions have yet to take effect. China has insisted that the reciprocal tariff cuts be implemented before it expands agricultural imports from the US. Washington and Beijing have been striving to finalize concrete investment agreements ahead of their leaders' meeting this month, as reported by the South China Morning Post. Negotiators have reportedly made significant advancements in discussions regarding the Board of Investment, a key initiative introduced during the May summit between Xi and Trump in Beijing.",
  "summary": "Ahead of a new round of bilateral trade talks, the US has extended the suspension of an expanded trade blacklist that helped inflame tensions with China last year and could subject overseas subsidiaries of Chinese companies to greater scrutiny. The US Bureau of Industry and Security (BIS) issued a final rule on Thursday extending the suspension of its 50 per cent affiliate rule until January 10,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}