US Treasury Proposes Expanding Outbound Investment Review to AI, Supercomputing, and Biotech

The U.S. Treasury Department proposed a rule on October 22, 2026, to strengthen oversight of American investments in sensitive technologies within "countries of concern." This proposal implements the Comprehensive Outbound Investment National Security Act passed by Congress in December 2025, upgrading the previous executive-order-based program into a statutory framework with broader scope.

Under the proposed rule, restricted sectors expand from semiconductors and quantum computing to include artificial intelligence (referred to by the Treasury using the term "superintelligence" or SI), supercomputing, biotechnology, and hypersonic systems. The geographic scope covers China, Russia, North Korea, Cuba, and Iran. This shift signals Washington's intent to leverage capital controls to hinder adversaries' military modernization capabilities.

The rule sets a clear threshold: it applies only to investments exceeding $50,000 and explicitly excludes many financial investments, such as stock purchases. This means private equity, venture capital, and direct investments involving tangible assets or technology cooperation will be the primary targets. Jason Chipman, a former Justice Department lawyer and partner at WilmerHale, noted that this will require companies to establish more substantial compliance programs to manage risk.

The rule is currently open for public comment and has not yet become final law. Ryan Majerus, a former U.S. trade official, described it as just the first step toward a more enforcement-minded regime. Meanwhile, Chinese Foreign Ministry spokesperson Mao Ning responded that overstretching the concept of national security and taking discriminatory measures serve no one's interests, stating that China will closely monitor developments and take necessary measures to safeguard its interests.