US Treasury Proposes Expanded Curbs on AI, Supercomputing Investments in China, Others

The U.S. Treasury Department proposed a rule on October 23, 2026, to expand restrictions on American outbound investments in China, Russia, North Korea and other countries of concern, adding hypersonic systems, supercomputing, biotechnology and artificial intelligence (AI) to the covered sectors. Investments above $50,000 in these areas would be subject to review, while most financial investments such as stock purchases would be excluded.

The proposal implements the Comprehensive Outbound Investment National Security Act passed by Congress in December 2025, which expanded on an executive order signed by then-President Joe Biden in 2023. The Treasury had previously established the Outbound Investment Security Program, initially focused on semiconductors, quantum computing and AI. The new rule broadens the scope to additional technologies and countries.

Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, said the proposal “sends an important signal to markets that Washington is tracking where U.S. capital is flowing and what capabilities it is helping build.” Jason Chipman, a partner at WilmerHale, said the rule would require more substantial compliance programs to manage risk.

The Treasury will hear public comments before issuing a final rule. In response, Chinese Foreign Ministry spokesperson Mao Ning said the U.S. should abide by market economy principles and stop interfering in normal economic and trade cooperation, adding that China will closely monitor developments and take necessary measures to safeguard its interests.