New US China Investment Proposal Could Reshape AI, Biotech and Chip Funding
Washington wants to control not just which technologies reach China, but also which American dollars help build them.
The US Treasury Department has proposed tighter restrictions on American investments in sensitive technology sectors in China and other countries considered national security risks, including Russia, Iran and North Korea.
Announced Oct. 22, the proposal implements the Comprehensive Outbound Investment National Security Act, passed by Congress in 2025 as part of the fiscal 2026 National Defense Authorization Act. It expands the existing Outbound Investment Security Program, established under former President Joe Biden in 2023.
The proposed rules cover advanced semiconductors and microelectronics, artificial intelligence systems, quantum computing, high-performance computing, hypersonic systems, and biotechnology. Treasury also uses the term “super intelligence” in its proposed AI-related provisions.
Treasury Secretary Scott Bessent said the rules would prevent adversaries from using American capital to develop technologies that threaten US security while giving investors greater clarity.
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