The main purpose of this legislation is to strengthen U.S. export controls by extending licensing requirements to subsidiaries of companies that are already listed on specific government watchlists. These watchlists include the Entity List and the Military End User List, which identify foreign entities that pose risks to U.S. national security or foreign policy interests. Key provisions of the legislation include the requirement for the Secretary of Commerce to apply licensing rules to any subsidiary that is 50 percent or more owned by an entity on the watchlists.