Global Trade & Foreign Policy Insights

On October 28, the U.S. Department of Commerce’s International Trade Administration released a request for information (the RFI) to guide its formulation of the American AI Exports Program (the Program), with comments due November 28.

Over the weekend, the White House announced, as a part of its economic and trade relations deal with China, that the U.S. will suspend implementation of the Affiliates Rule (a/k/a the BIS 50 Percent Ownership Rule) effective November 10, 2025.

In a significant decision announced last week, the Department of Justice (DOJ) declined to prosecute a private equity (PE) firm after the firm voluntarily disclosed sanctions and export control violations committed by a portfolio company the firm acquired. This result, and the government’s joint enforcement actions against the portfolio company and its former CEO, offer several important takeaways:

• It is critical for PE firms to conduct robust, non-siloed due diligence for trade and other compliance both before and after acquisition.

• Sanctions and export controls enforcement remains a key government focus, as evidenced by the extensive behind-the-scenes coordination between Justice, Treasury, Commerce, and Homeland Security.

• It is not uncommon for private equity firms to acquire a company and then discover hidden problems. Firms that promptly investigate, self-report, cooperate, and remediate can avoid criminal prosecution, even for serious violations.

• The government continues to hold individuals personally responsible for violations of sanctions and export controls regulations.