
Affiliates Rule Suspended as Dutch Nexperia Case Highlights Extraterritorial Impact
The US Department of Commerce has suspended its controversial Affiliates Rule for one year following negotiations with China, temporarily halting export controls that would have extended restrictions to thousands of foreign subsidiaries owned by listed entities. The suspension, effective through 9 November 2026, comes as part of a broader trade deal in which China has agreed to pause its expansive rare earth export controls. However, the Dutch government's extraordinary seizure of semiconductor manufacturer Nexperia demonstrates the far-reaching extraterritorial consequences of US-China trade tensions, with European companies and global supply chains caught in the crossfire.