US Treasury proposes rule to limit high-tech investments in China and other adversaries

The U.S. Treasury Department has proposed a new rule targeting American high-tech investments in countries including China, Russia, North Korea, Cuba, and Iran, according to WTOP. This initiative is part of an ongoing government effort to prevent these nations from gaining military advantages through U.S. capital.

The program began in 2023 when then-President Joe Biden signed an executive order restricting outbound investments in sectors like semiconductors, quantum computing, and artificial intelligence in China. Treasury later established the Outbound Investment Security Program to enforce these restrictions.

In December 2025, Congress passed a law expanding the program to cover more technologies and countries. The proposed rule announced this week would further extend restrictions to investments in hypersonic systems, supercomputing, biotechnology, and artificial intelligence, which Treasury refers to as "superintelligence."

Experts cited by WTOP noted that the rule signals Washington's close monitoring of U.S. capital flows and their potential to accelerate military-relevant capabilities. The rule would apply to investments exceeding $50,000 but exclude many financial investments like stock purchases.

Treasury will accept public comments on the proposal as it moves forward with implementing the 2025 law, known as the Comprehensive Outbound Investment National Security Act.