World
Treasury proposes wider US investment curbs on China and rivals
Washington is turning private capital into a national security control
Washington is turning private capital into a national security control
The US Treasury has proposed tighter limits on American money flowing into advanced technology in China and other countries seen as security risks. The rules would cover China, Russia, North Korea and Iran, while changing Venezuela’s status. They would target artificial intelligence, semiconductors, quantum technology, supercomputers, hypersonic systems and biotechnology. Some investments would be banned, while others would require notice. , deals below a proposed $50,000 limit and some might be excluded.
The proposal expands rules created by President Biden’s , put into effect on January 2, 2025, and widened by the December 18, 2025 . Unlike , the rules target funding, expertise and business partnerships. They could limit Chinese access to American capital and change supply chains, but also reduce investment choices and complicate global business, including India’s technology decisions. Public comments are due December 7, 2026, so the final rules may change.
Treasury set December 7, 2026, as the deadline for comments on the proposed rule. The final outcome could affect US investors, Chinese and other targeted technology companies, , global semiconductor and AI supply chains, and India's technology and investment-policy choices.
The proposal would not prohibit every investment connected to a listed country or technology. It distinguishes restricted national-security transactions from ordinary financial activity and contemplates additional exceptions, including possible , while leaving investors to assess , thresholds and transaction structures.
The framework would prohibit from making transactions involving covered foreign persons and prohibited technologies, while requiring notification for transactions involving . A proposed $50,000 would remove smaller transactions from the notification requirement, and other exceptions would cover areas such as publicly traded securities, underwriting and bank lending.
The proposal covers semiconductors and microelectronics, artificial intelligence and , , high-performance computing and supercomputing, hypersonic systems, and biotechnology. The categories target technologies that can support military capabilities, strategic infrastructure, or .
Treasury issued a under the COINS Act covering China, Russia, North Korea, Iran and Cuba, while changing the treatment of Venezuela. The proposal would move the program from a primarily China-focused regime toward a broader country-of-concern framework.
Treasury issued an enforcement announcement showing that the Outbound Investment Security Program had moved beyond framework-building into compliance activity. The development established the existing rules as an operating national-security control before the COINS Act expansion.
Congress enacted Subtitle C of the Comprehensive Outbound Investment National Security Act as part of the Fiscal Year 2026 National Defense Authorization Act. The law codified and expanded Treasury's authority, directing regulations for prohibited and notifiable investments involving and specified technologies.
Treasury's final rule became effective for transactions completed on or after January 2, 2025. It applied to , including certain controlled foreign entities, investing in covered activities linked to mainland China, Hong Kong and Macau.
Treasury issued implementing Executive Order 14105. The rules prohibited specified transactions and required notification for others involving connected to China, Hong Kong and Macau.
directed Treasury to restrict certain US investments in China, Hong Kong and Macau. The initial framework covered semiconductors and microelectronics, , and artificial intelligence, adding capital and expertise to existing technology-export controls.