U.S. treasury proposes rule to curb high tech investments in china, Russia and other adversaries

A broader investment screening plan

The proposal announced Thursday would extend existing limits on outbound U.S. investment to additional technologies and countries. Covered fields would include artificial intelligence, biotechnology, supercomputing and hypersonic systems able to travel at five times the speed of sound.

The restrictions would apply to investments exceeding $50,000, while many financial investments, including stock purchases, would be excluded. Treasury will accept public comments before issuing a final version of the rule.

How the program developed

The U.S. government began restricting certain outbound investments in 2023, after then-President Joe Biden signed an executive order. The measure addressed sectors such as semiconductors, quantum computing and artificial intelligence involving China.

Treasury later created the Outbound Investment Security Program. Congress passed the Comprehensive Outbound Investment National Security Act in December 2025, codifying and widening the program to include more technologies and places, among them Cuba, Iran, North Korea and Russia.

Experts weigh the proposal

Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, said the proposal signals that Washington is monitoring U.S. capital flows and the capabilities they support. He said investment screening recognizes that capital can help advance military-relevant capabilities.

Jason Chipman, a former Justice Department lawyer and WilmerHale partner, said companies would need more substantial compliance programs to manage risk. Former U.S. trade official Ryan Majerus described the proposal as an early step in a lengthy process that could lead to stronger enforcement.

China and Russia in focus

The proposal includes Russia shortly after President Donald Trump waived sanctions on the country following a diesel deal with President Vladimir Putin. In Beijing, Foreign Ministry spokesperson Mao Ning objected to adding biotechnology, saying restrictions justified by national security could harm economic and investment activity.