The US Treasury Department has proposed adding biotechnology to the list of restricted sectors for American investment in Chinese companies. The plan would also widen existing bans on investing in Chinese artificial intelligence businesses and extend the program to Cuba, Iran, North Korea, and Russia.
What happened
The proposed changes aim to prevent American money and expertise from contributing to the development of technologies that could strengthen foreign adversaries' military, intelligence, and surveillance capabilities. Certain investments would be banned outright, while others would require reporting to the Treasury Department within 30 days of completion.
The proposal would implement legislation passed by Congress in December 2025 to expand an existing US investment-control program. The Treasury Department is accepting public comments on the proposal until December 7. The proposed changes would also expand restrictions on advanced computer chips, quantum technologies, and high-performance computing, as well as strengthen controls on companies linked to the Chinese military.
The Treasury Department estimates that around 200 investment transactions annually could fall under the proposed regulations. The department is considering establishing a public database to identify companies subject to the restrictions. The proposal has been met with criticism from China, with a foreign ministry spokesperson accusing the US of using national security as a pretext for discriminatory investment restrictions.
