The US Treasury has published draft regulations to expand its Outbound Investment Security Program, aiming to stop US investment in critical technologies in countries such as China, Russia, North Korea and others. The proposed rule would widen limits on American money for chips, AI, quantum technology, supercomputing, hypersonic systems and, newly, biotechnology. The draft follows the 2026 defence bill and the COINS Act, requiring investors to notify Treasury of some deals and banning others outright.
The list of targeted countries now includes Cuba, Iran, North Korea, Russia, China (including Hong Kong and Macau) and Venezuela, though Treasury says Venezuela does not meet the current definition. The draft also changes the term “AI systems” to “super intelligence systems” in line with a recent executive order. Investors would lose the option to simply report some deals, facing outright bans and the risk of civil penalties or forced divestment for breaches.
The Federal Register will publish the draft on 26 October, with written comments due by 7 December. Final rules and a start date will follow. The move comes as China considers its own controls on AI and chip exports, adding to global regulatory uncertainty for cross-border tech investment.
