Treasury Expands Outbound Investment Restrictions on U.S. Tech Funding to China and Other Strategic Rivals

The U.S. Treasury Department on Wednesday proposed a sweeping rule to restrict American investment capital flowing into sensitive high-technology sectors in China, Russia, North Korea, and other strategic rivals, marking a significant expansion of national-security-based investment screening. The proposed regulation, implementing the Comprehensive Outbound Investment National Security Act passed by Congress in December 2025, would extend controls to cover hypersonic weapons systems, supercomputing, biotechnology, and artificial intelligence—building on restrictions initiated under the Biden administration in early 2025 that originally focused on semiconductors and quantum computing.