Photo: Benoît Prieur / CC0, via Wikimedia Commons (cropped)
Developing story
The U.S. Treasury Department proposed a rule on Oct. 22 to restrict American investment in advanced technology in China, Russia, North Korea and other “countries of concern.” It would expand limits to hypersonic systems, supercomputing, biotechnology and artificial intelligence, according to the Associated Press.
The U.S. Treasury Department proposed a rule on Oct. 22 to restrict American investment in advanced technology in China, Russia, North Korea and other “countries of concern,” according to the Associated Press.
The rule would expand the limits to hypersonic systems, supercomputing, biotechnology and artificial intelligence. Treasury used the term “superintelligence” for AI, the AP reported.
It would carry out the Comprehensive Outbound Investment National Security Act, which Congress passed in December 2025. That law codified and expanded a program begun in 2023, when then-President Joe Biden signed an executive order limiting investment going into China in semiconductors, quantum computing and AI. The 2025 law added more technologies and more countries, including Cuba, Iran, North Korea and Russia.
The proposed rule would apply only to investments above $50,000. It would exclude many financial investments, including stock purchases. Treasury will take public comment before issuing a final rule.
Days before Russia was included, President Donald Trump lifted sanctions on the country after a diesel agreement with President Vladimir Putin, according to the AP.
Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, said the rule “sends an important signal to markets.” Jason Chipman, a WilmerHale partner, said it will require “more substantial compliance programs.”
Ryan Majerus, a former U.S. trade official now at King & Spalding, called the proposal “just the first step in a fairly long process.”
In July, Treasury fined a U.S.-based company $200,000 for failing to report a $92,500 investment in a Chinese AI and robotics company made by one of its subsidiaries, the AP reported.
The reports did not say when the comment period ends or when a final rule could take effect.
This story is developing and will be updated.
Sources
What it means for you
- The proposed rule would apply only to investments above $50,000, according to the AP.
- Many financial investments, including stock purchases, would be excluded under the proposal.
- Treasury will hear public comments before issuing a final rule, so the proposal could still change.
- A July $200,000 fine shows Treasury penalizes companies that fail to report investments in Chinese tech firms.