The Trump administration has proposed new regulations to restrict US investments in sensitive Chinese technology sectors, including AI, advanced chips, hypersonic weapons, biotech and brain-computer interfaces. The rules implement the Comprehensive Outbound Investment National Security Act, passed by Congress in 2025, aimed at preventing adversaries like China, Iran and Russia from using US capital to develop critical technologies that threaten American national security.
Treasury Secretary Scott Bessent said the proposed regulations strengthen the existing Outbound Investment Security Program by providing clarity to investors while promoting an open investment environment. The regulations will undergo public comment before finalisation.
The biotechnology sector faces the most significant scrutiny under the proposal, with certain gene and cell therapies, immunotherapies and compounds linked to biological weapons proliferation deemed prohibited. Craig Singleton of the Foundation for Defense of Democracies noted that biotech investments carry national security consequences and will face closer review.
The Biotechnology Innovation Organization raised concerns about overly broad restrictions potentially weakening US competitiveness. However, cash-based licensing deals by companies such as Eli Lilly, Pfizer and Bristol Myers Squibb remain exempt from the regulations.
Source: Financial Times Companies · Summarized by HeadlinesBriefing