The US has temporarily suspended a sweeping export control regulation that had expanded trade blacklist restrictions to thousands of Chinese firms, reports Caixin.

The Bureau of Industry and Security (BIS) announced it would pause the so-called 50 per cent ownership rule until November 9, 2026. The measure had targeted entities majority owned by companies already on the US Entity List.

Introduced on September 30, the rule automatically extended export restrictions to any firm at least 50 per cent owned by a blacklisted entity.

The regulation had sharply widened the scope of US trade controls, with the number of affected Chinese firms rising from just over 1,000 to nearly 20,000, according to Dow Jones calculations.