# US Treasury proposes curbs on American investment in Chinese AI, biotech and supercomputing

World & Diplomacy · 22 October 2026 · Washington, D.C., United States
URL: https://connectthedots.news/event/2026-10-22-us-treasury-proposes-curbs-on-american-investment-in-chinese-ai

> A proposed rule would extend US outbound investment restrictions on China, Russia and other countries of concern to AI, hypersonics, supercomputing and biotechnology; Beijing objected.

The US Treasury Department on Thursday proposed a rule to restrict American investments in high-tech sectors in "countries of concern" including China, Russia and North Korea. It would extend restrictions to hypersonic systems, supercomputing, biotechnology and artificial intelligence, which the rule calls "superintelligence", the term President Donald Trump favours. [1]

The rule implements the Comprehensive Outbound Investment National Security Act, passed in December 2025, which codified and widened an outbound investment programme begun under President Joe Biden in 2023 and added Cuba, Iran, North Korea and Russia. It would apply only to investments above $50,000 and excludes many financial investments such as stock purchases. Treasury will take public comments before issuing a final rule. [1]

China's foreign ministry spokesperson Mao Ning on Friday urged Washington to "stop disrupting normal economic and trade cooperation between enterprises", criticised "overstretching" the concept of national security and said Beijing would take necessary measures to protect its interests. The proposal comes during a US-China trade truce that was extended last month into January. [1][2]

Russia's inclusion comes days after Trump waived sanctions on Russia following a diesel deal with President Vladimir Putin, AP noted. Craig Singleton of the Foundation for Defense of Democracies said the proposal signals Washington is tracking where US capital flows. [1]

## Who was involved

- [US Department of the Treasury](https://connectthedots.news/org/us-department-of-the-treasury): Proposed the expanded outbound investment rule [1]
- [Scott Bessent](https://connectthedots.news/person/scott-bessent): Heads the department that issued the proposal [1]
- [Ministry of Foreign Affairs of China](https://connectthedots.news/org/ministry-of-foreign-affairs-of-china): Urged the US to stop disrupting normal trade cooperation [2]
- [Mao Ning](https://connectthedots.news/person/mao-ning): Criticised the proposal at Friday's briefing [2]
- [Donald Trump](https://connectthedots.news/person/donald-trump): His administration issued the rule; recently waived some Russia sanctions [1]

## Sources

1. AP (via ETV Bharat), "US Treasury proposes a rule to crack down on high-tech investments in China, other adversaries", 23 October 2026: https://www.etvbharat.com/en/international/us-treasury-proposes-a-rule-to-crack-down-on-high-tech-investments-in-china-other-adversaries-enn26102300453
2. Bernama (Xinhua), "China Urges US To Stop Disrupting Normal Economic, Trade Cooperation", 23 October 2026: https://www.bernama.com/en/world/news.php?id=2624695