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Regulation

US Treasury targets China with new AI and high-tech investment restrictions

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The Trump administration is cracking down on American investments in China’s AI, military tech, and life sciences sectors. The US Treasury just unveiled regulations under the Comprehensive Outbound Investment National Security Act, which Congress approved in 2025 to tighten checks on investments in China, Russia, Iran, and other ‘countries of concern.’ For some time now, US officials have sought to block rival nations from the financial backing needed to upgrade their armed forces. Much like Trump’s recent policy move, former President Joe Biden had also issued an executive order limiting US capital flowing into China’s AI, semiconductor, and quantum computing sectors. Afterward, the Treasury launched the Outbound Investment Security Program.

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