The U.S. Treasury Department proposed broader controls on American investment in sensitive technologies overseas on October 22, extending a national security framework covering chips, artificial intelligence and quantum technology. The Washington announcement adds biotechnology to the proposed scope. Associated Press reported that the restrictions would cover China, Russia, Iran, North Korea and Cuba, rather than China alone.
Treasury said the proposal implements legislation enacted in December 2025 and builds on its Outbound Investment Security Program. Its existing rules took effect on January 2, 2025, following an executive order issued in 2023. The department says the aim is to prevent American capital from supporting technologies that strengthen foreign adversaries’ military, intelligence or surveillance capabilities.
The legislation identifies five sectors: semiconductors and microelectronics, artificial intelligence systems, quantum information technology, high-performance computing and supercomputing, and hypersonic systems. Treasury said it used additional authority to include biotechnology. The framework distinguishes investments that require notification from transactions that would be prohibited, with technical definitions determining which activities fall within each category.
The proposal also addresses exceptions, investor due diligence, information submitted in notifications and penalties for violations, according to Treasury. It includes a process for seeking non-binding feedback. These provisions describe how investors would assess covered transactions and communicate with the department; the announcement does not mean that every overseas technology investment would be banned.
In Beijing, Foreign Ministry spokesperson Mao Ning criticised the proposed biotechnology restrictions, AP reported. She said expanding national security arguments and discriminating against particular countries would harm normal economic cooperation, adding that China would monitor developments and protect its interests. Treasury, for its part, said its approach seeks to protect national security while maintaining an open investment environment.
The expanded rules remain a proposal, not a completed regulatory change. Treasury’s program page sets December 7, 2026, as the deadline for public comments. The department said it will consider feedback before issuing final implementing regulations, which will specify an effective date. The existing program therefore provides the background, while the consultation determines the next steps for the wider technology controls.
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