On October 30, 2025, U.S. Treasury Secretary Scott Bessent announced that the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) will halt enforcement of the recently implemented “Affiliate Rule”. According to Bessent, the suspension will remain in place for one year as part of an agreement with China, which in turn is suspending its own export controls on rare earth elements.
At this stage, not much.
BIS published the Interim Final Rule (IFR), known as the Affiliate Rule, on September 29, and it became effective immediately. Until BIS issues a formal update to the Federal Register to suspend and or amend the rule, the Affiliate Rule remains in effect.
Bessent’s statement mentions a suspension on the Affiliate Rule with respect to China; however, the Affiliate Rule affects entities beyond China and Chinese companies, and there has been no mention of a complete suspension.
On November 1, President Trump released a Fact Sheet: “President Donald J. Trump Strikes Deal on Economic Trade Relations with China”.
This fact sheet clarifies that, starting on November 10, 2025, the US will suspend the implementation of the IFR titled “Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities” for one year.
Toward China and Chinese companies:
Until the suspension date of November 10, exporters, reexporters, and transferors should proceed with caution and perform extra due diligence on ownership concerns for all transactions involving China and Chinese End-Users.
Document your ownership findings and your transaction decisions. The IFR Affiliate Rule also included the authorization of a Temporary General License (TGL) – Non-listed foreign affiliates of listed entities. This TGL may provide an authorization during this waiting period.
Transactions Involving Other Countries:
The September 29, IFR Affiliate Rule remains in effect for entities outside of China.
The rule expanded the scope of End-User controls to include any entity owned 50% or more, directly, or indirectly, by multiple entities subject to EAR license requirements pursuant to some combination of the Entity List, MEU List, or SDN List.
Exporters, reexporters, and transferors must still perform extra due diligence to screen all parties to a transaction, and the ownership structures, for potential restrictions under the BIS Affiliate rule.