The Treasury Department proposed a rule Thursday that would widen restrictions on American investment in high-tech sectors in China, Russia, North Korea and other «countries of concern,» extending a screening program that began in 2023 and was later codified and expanded by Congress.
The proposal would add hypersonic systems capable of traveling at five times the speed of sound, supercomputing, biotechnology and artificial intelligence to the list of restricted technologies. Treasury used President Donald Trump's preferred term for AI, «superintelligence» or SI, in describing the covered category. The rule implements the Comprehensive Outbound Investment National Security Act, which Congress passed in December 2025 to codify and broaden the Outbound Investment Security Program and to target additional countries, including Cuba, Iran, North Korea and Russia.
The program traces back to an executive order signed in 2023 by then-President Joe Biden, which placed restrictions on outbound U.S. investment in semiconductors, quantum computing and artificial intelligence flowing into China. The goal has been to deny China and other adversaries capital that could help them strengthen their militaries. The inclusion of Russia in the proposed rule comes days after Trump waived sanctions on Russia following a diesel deal with President Vladimir Putin.
The proposed rule would apply only to investments exceeding $50,000 and would exclude many financial investments, including stock purchases. Treasury will accept public comments before issuing a final rule, a step analysts described as the beginning of a longer process.
«It's just the first step in a fairly long process to get to changes which presumably will be more enforcement-minded, to put more teeth behind the outbound investment program,» said Ryan Majerus, a former U.S. trade official now a partner at the King & Spalding law firm.
Supporters said the screening effort signals that Washington is monitoring the flow of American capital and the capabilities it helps build. «It sends an important signal to markets that Washington is tracking where U.S. capital is flowing and what capabilities it is helping build,» said Craig Singleton, a senior fellow at the Foundation for Defense of Democracies. The screening of outbound investments «recognizes that capital can accelerate military-relevant capabilities just as surely as technology transfer can,» he said.
Jason Chipman, a former Justice Department lawyer who specializes in cybersecurity, investment rules and export controls as a partner at WilmerHale, said the new rule «will require more substantial compliance programs to manage risk.»
In Beijing, the Chinese Foreign Ministry said the United States should abide by the principles of a market economy and stop interfering in normal economic and trade cooperation between businesses. Asked about the addition of biotechnology, ministry spokesperson Mao Ning said that «overstretching the concept of national security, taking discriminatory measures against specific countries, and artificially restricting trade, economic and investment activities serve no one's interests.» She said China will closely monitor developments and take necessary measures to safeguard its interests.
The proposal lands amid a years-long economic and technology rivalry between the world's two largest economies. Since Trump's first term, Washington and Beijing have restricted exports of sensitive technology and critical products — including China's rare earth minerals and America's advanced computer chips — and imposed tariffs on each other's goods. Trump and Chinese President Xi Jinping agreed last year to ease tensions during talks, a temporary truce they extended last month into January, though the sparring has continued.
Enforcement has already begun under the existing program. In July, Treasury issued a $200,000 fine against a U.S.-based company for failing to report a $92,500 investment by one of its subsidiaries in a Chinese artificial intelligence and robotics company.