When Landon Heid walked into the Senate Banking Committee room on April 10, 2025, most people expected a standard, dry bureaucratic shuffle. Heid was President Trump’s pick for Assistant Secretary of Commerce for Export Administration. Basically, he was being vetted to be the gatekeeper of America’s most sensitive tech.
But things didn't exactly go to plan.
Heid is a known "China hawk." He spent years as a diplomat in Beijing and worked for the House Select Committee on the CCP. During the Landon Heid confirmation hearing, he didn’t hold back. He talked about the "dystopian future" he saw while stationed in China and pushed for a massive tightening of export loopholes.
Then, in a move that shocked the D.C. policy world, the White House withdrew his nomination months later on September 10, 2025.
Wait, what?
The guy who was seemingly perfect for a tough-on-China administration was suddenly out. It left everyone asking the same thing: If a hawk like Heid isn't the right fit, what does the administration actually want for the Bureau of Industry and Security (BIS)?
The "50% Rule" and the Hearing Room Drama
One of the most intense moments of the Landon Heid confirmation hearing revolved around a technicality that has huge real-world consequences: subsidiaries.
Right now, if the U.S. puts a Chinese company on a "restricted list," that company's subsidiaries aren't always automatically restricted too. Heid called this a glaring gap. He proposed a "50% rule"—similar to how the Treasury Department handles sanctions—where if a restricted entity owns half of another company, that second company is restricted too.
Heid called it a "simple fix."
Industry leaders weren't so sure. They worried about "over-compliance" and the sheer nightmare of mapping out corporate ownership across multiple tiers of Chinese firms.
Why the Senate Was Actually Impressed
Surprisingly, Heid had a lot of fans on both sides of the aisle. Senator Tim Scott (R-SC) praised his "background and perspective," while even some Democrats seemed to respect his boots-on-the-ground experience in Beijing during the early days of the COVID-19 pandemic.
He spoke about:
- Military-Civil Fusion: How China blurs the line between commercial tech and military hardware.
- Dual-Circulation: Beijing's strategy to make the world dependent on China while making China independent of the world.
- Quantum and AI: Why losing the lead in these sectors is basically game over for U.S. economic security.
Heid wasn't just a suit with a script. He was a guy who had lived in the "commanding heights" of the tech competition. He argued that the BIS is the most important agency nobody talks about.
The Mystery of the Withdrawal
If the Landon Heid confirmation hearing went so well—and it did, he was reported favorably by the committee on May 6, 2025—why was he pulled?
On September 10, 2025, the Senate received a message from the President withdrawing the nomination. No official reason was given. This sent the trade community into a tailspin.
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Some experts, like Chris McGuire (formerly of the State Department), worried this signaled a "softening" of the administration's stance. Others whispered about internal power struggles between the Commerce Department and the White House.
Honestly, it’s kinda weird.
Usually, you withdraw a nominee because of a scandal or because they're going to fail the Senate vote. Heid had neither of those problems. He was a "China hawk" in an administration that loves "China hawks."
What This Means for Tech Companies Today
Even though Heid isn't taking the seat, the ideas he championed during his Landon Heid confirmation hearing are still very much alive. The "50% rule" he discussed is still being debated as an "Interim Final Rule." This means it could become law overnight without the usual long-winded public comment period.
If you're a business owner or an investor in tech, here's what you need to track:
- The Hong Kong Shift: Heid made it clear that Hong Kong is being treated just like any other part of mainland China now. The "special status" is dead.
- Subsidiary Mapping: You can't just check the name on the box anymore. You have to know who owns the company that owns the company you're selling to.
- The "America First" Trade Policy: The 2025 directive to close export control loopholes is still the North Star for the Commerce Department, with or without Heid.
The Bureau of Industry and Security is becoming a "kinetic" agency. They aren't just filing paperwork; they're in a high-stakes race to keep AI chips and quantum computing out of the hands of adversaries.
Actionable Next Steps for Compliance
- Audit Your End-Users: Don't just rely on the Entity List. Look at ownership structures. If a parent company is listed, assume the subsidiary is a "high-risk" entity even if it's not officially barred yet.
- Review Hong Kong Shipments: Treat these with the same level of scrutiny as shipments to Beijing or Shanghai.
- Monitor the BIS 50% Rule: This rule is the "ghost" of Heid's nomination. It hasn't been fully codified, but the momentum is there.
- Watch the New Nominee: Keep an eye on whoever replaces Heid. If they are less of a "hawk," expect a shift toward tariffs rather than outright export bans.
The story of the Landon Heid confirmation hearing isn't just about one man’s failed career move. It’s a roadmap for where U.S. trade policy is headed in 2026 and beyond. Even though Heid didn't get the job, his fingerprints are all over the current export control strategy.