Moolenaar Backs President Trump's Subsidiaries Export Controls Policy

Today, Chairman John Moolenaar (R-MI) of the House Select Committee on China released the following statement in response to President Trump's expansion of U.S. export controls to cover Chinese Communist Party (CCP)-backed subsidiaries and protect American consumers:

"President Trump is putting America first and preventing CCP-tied entities from accessing U.S. technology through hiding their ownership in foreign front companies. As the Chairman of the Select Committee on China, I'll continue working to ensure Chinese firms cannot manipulate our export controls and undermine our national security interests," said Chairman Moolenaar.

“We are in a must-win, generation-defining battle shaping the future of technology. This critical measure bolsters U.S. national security and safeguards American technological leadership by closing loopholes that allow bad actors to evade restrictions and preventing them from accessing our sensitive technology. This commonsense move aligns the Commerce Department’s Entity List and Military End-User List rules with the Treasury Department’s sanctions rules. No longer will blacklisted companies be able to use subsidiaries to circumvent export controls. As adversaries like China and Russia attempt to exploit vulnerabilities, this is more important now than ever. The committee is working to codify President Trump’s decisive action,” said Chairman Brian Mast of the House Foreign Affairs Committee.

This January, President Trump issued his America First Trade Policy, instructing “the Secretary of State and Commerce to review the U.S. export control system in light of developments involving strategic adversaries.”

Now, under the Department of Commerce's expansion, any entity that is at least 50% owned by one or more entities on the Entity List—a list of companies or organizations that the U.S. government has identified as potential threats to national security—will be subject to restrictions. The Entity List includes numerous Chinese companies that have long exploited American export controls to boost the CCP's objectives.

“For too long, loopholes have enabled exports that undermine American national security and foreign policy interests. Under this Administration, BIS is closing the loopholes and ensuring that export controls work as intended," said Jeffrey I. Kessler, Under Secretary of Commerce for Industry and Security in a release.