US Treasury proposes wider limits on American investment in Chinese AI, chips and other technologies
The proposed rules under the COINS Act would ban or require notice of some US investments in companies tied to China, Russia, Iran, North Korea, Cuba and Venezuela in six technology areas, including AI and semiconductors. Comments are open until 7 December.
The US Treasury on Thursday 22 October proposed rules that would expand its limits on American investment in advanced technology in China and other countries it classes as countries of concern.
The proposal implements the Comprehensive Outbound Investment National Security (COINS) Act, which Congress passed as part of the 2026 National Defense Authorization Act, the Treasury said. It would require US persons to notify the Treasury of some transactions and ban others involving companies tied to those countries.
Under the law and the proposed rule, the countries of concern are China (including Hong Kong and Macau), Cuba, Iran, North Korea, Russia and Venezuela, according to a Treasury fact sheet. The rule covers six areas: semiconductors and microelectronics, artificial intelligence, quantum technology, high-performance computing and supercomputing, hypersonic systems and biotechnology. The Treasury said it had added biotechnology using powers in the law. Following a September executive order, the proposal uses the term “super intelligence systems” in place of “AI systems”, the fact sheet said.
The proposal lists exceptions, including for transactions totalling no more than $50,000 over 12 months, which would not need to be notified.
“The proposed regulations would strengthen the existing Outbound Investment Security Program to prevent our adversaries from using U.S. investment to develop critical technologies that threaten U.S. national security,” Treasury Secretary Scott Bessent said.
The Treasury is taking public comments until 7 December 2026. Final rules, to be issued later, will set the date the programme takes effect, it said.
Sources
- Treasury Issues Proposed Rule to Implement Comprehensive Outbound Investment National Security Act · US Department of the Treasury
- Public Fact Sheet & FAQs - COINS Act NPRM · US Department of the Treasury
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