On November 11, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) formally published a one year suspension of the “Affiliates Rule,” previously announced by Treasury Secretary Scott Bessent, in the Federal Register. The suspension is being imposed in two phases; the first phase temporarily suspends the Affiliates Rule and is effective immediately through November 9, 2026. The second phase reimposes the Affiliates Rule and will be effective starting November 10, 2026.

The suspended Affiliates Rule would have imposed Entity List restrictions on entities that are at least 50 percent owned, directly or indirectly, individually or in the aggregate, by one or more parties subject to certain restrictions or listed on the BIS Entity List. As discussed in our October 30 alert, Secretary Bessent announced the suspension of the Affiliates Rule in exchange for China’s suspension of its proposed export controls on rare earth minerals. On November 9, 2025, China’s commerce ministry announced a suspension of its export ban of gallium, germanium, and antimony to the U.S.; exports of these metals remain subject to China’s export license requirements.

As this is not a repeal of the Affiliates Rule, we recommend that companies explore options to enhance screening procedures over the next 12 months, when the Affiliates Rule is scheduled to come into effect on November 10, 2026. Please reach out to Josephine Aiello LeBeau, Anne Seymour, Jahna Hartwig, Grace Beck, or another member of Wilson Sonsini’s National Security and Trade practice with questions regarding this new development.