Independent & non-partisan · data-first · as of October 12, 2026

US–CHINA TRADE

The Glossary

Foreign Direct Product Rule

The export-control doctrine making U.S. technology law global for chips bound for China.

Definition

The Foreign Direct Product Rule extends U.S. jurisdiction to foreign-made items produced from U.S. technology, software or equipment — replacing the older, territorial view of export control. First deployed against Huawei in May 2020, it meant a fab in Taiwan or Korea using U.S. tools needed a license to ship to a listed Chinese customer. The October 2022 and 2023-24 chip controls broadened it to entire classes of advanced chips and tools.

Why it matters

The FDP rule is why "export controls" now bite worldwide: it converts U.S. equipment dominance into global enforcement without a single treaty.

Related terms

Entity List

Sources

Bureau of Industry and Security ↗