The U.S. Treasury Department proposed a rule on Thursday, October 22, 2026, to restrict American high-tech investments in China, Russia, North Korea, and other nations designated as "countries of concern." The regulations target technologies including artificial intelligence (AI), hypersonic systems, quantum information technologies, high-performance computing, and biotechnology. Treasury officials stated the proposal implements the Comprehensive Outbound Investment National Security (COIN) Act passed by Congress in 2025.
The proposed rule builds on a 2023 executive order by former President Joe Biden that restricted investments in semiconductors and quantum computing in China. The 2025 COIN Act expanded the program to include additional technologies and countries such as Cuba and Iran. Treasury Secretary Scott Bessent said in a statement that the regulations aim to prevent adversaries from using U.S. investment to develop critical technologies that could threaten national security.
The restrictions apply to investments exceeding $50,000 but exclude certain financial activities, such as stock purchases. Former U.S. trade official Ryan Majerus described the proposal as a step toward making the Outbound Investment Security Program more "enforcement-minded." The department will accept public comments on the proposal before issuing a final rule.
For U.S. investors, the concrete day-to-day change involves new reporting requirements and the potential for federal fines if investments in sensitive foreign sectors are not disclosed or authorized. The Treasury Department stated that this clarity is intended to provide an "open investment environment" by defining which technologies are off-limits. The inclusion of Russia in this rule follows a separate action in October 2026 where President Donald Trump waived sanctions on Russia after a diesel agreement with President Vladimir Putin.
The knock-on effects could influence global supply chains and the pace of technological development in the targeted countries. In response to recent U.S. tech restrictions, the Chinese Ministry of Commerce accused the U.S. of using national security as a pretext to suppress China and stated it would take "all necessary measures" to defend its interests. The public comment period is the next step in the process, followed by the issuance of a final rule, the effective date of which has not yet been reported.