(Bloomberg) — The Trump administration plans to broaden restrictions on China’s tech sector with new regulations to capture subsidiaries of companies under US curbs.

Most Read from Bloomberg

Officials are drafting a rule that would impose US government licensing requirements on transactions with companies that are majority-owned by already-sanctioned firms, according to people familiar with the matter.

Some of China’s biggest semiconductor design and fabrication firms are subject to US sanctions via the so-called Entity List, from Huawei Technologies Co. to Yangtze Memory Technologies Co., as part of a far-reaching US campaign to rein in a geopolitical rival’s technological ascent. The goal of the new policy is to prevent workarounds to the curbs via the creation of new subsidiaries — a trend that’s produced what some US policymakers describe as a whack-a-mole problem.

The White House and Commerce Department didn’t immediately respond to requests for comment.

The move risks deepening tensions between the world’s two largest economies, especially after President Donald Trump accused China on Friday of violating the spirit of recent negotiations in Geneva. Export controls imposed by Washington to limit China’s access to advanced semiconductors have angered Chinese officials, while a crackdown by Beijing on exports of critical minerals has sparked outrage among Trump officials.

The rule — which would harmonize a 50% ownership threshold across the Entity List, Military End-User list and Specially Designated Nationals list — could be unveiled as soon as June, said the people, who asked not to be named to discuss private deliberations. The SDN list from the Office of Foreign Assets Control already uses such an approach.

The people emphasized that the contents and timing of the rule and related sanctions are not yet finalized and could still change. After the rule is published, the US is likely to move forward with new sanctions on major Chinese companies, the people said.

Trump officials have been considering sanctioning Changxin Memory Technologies Inc. and slapping curbs on parts of Semiconductor Manufacturing International Corp.’s business that are not currently subject to US controls, Bloomberg News reported in February.

CXMT in January was found to have advanced its chipmaking technology faster than anticipated, despite US controls on exports of advanced technology to China.