The U.S. moved this month to cut off a Chinese conglomerate’s access to Western technology, but the firm can still secure those goods through a technicality that some former senior officials say is a major loophole in the U.S. export-control regime.
U.S. companies are barred from exporting to companies named on the Commerce Department’s so-called Entity List, unless they get approval.
But listed companies can still buy U.S. goods through subsidiaries that aren’t on the Entity List, current and former government and industry officials say.
Industry officials say some U.S. companies intend to keep selling high-tech goods to Chinese companies in that manner.