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The U.S. Treasury Department has proposed new rules to ban Americans from investing in Chinese companies that develop any AI systems. Current rules only restrict investment in the most powerful Chinese AI models, and smaller AI projects can still receive funding after reporting to the Treasury Department; the new proposal would comprehensively ban such AI investments and add high-bandwidth memory, photonic chips, and radiation-hardened chips to the banned chip categories. The proposal also adds two new prohibited investment sectors, hypersonic weapons and biotechnology (including brain-computer interfaces and automated laboratory software), and expands restricted countries from China to Russia, Iran, North Korea, and Cuba. Purchases of public stocks, index funds, or small fund shares not exceeding $2 million would still be allowed, so it mainly affects venture capital and private equity transactions; the Treasury Department will not publish a prohibited list, and investors must verify each transaction themselves. Other reports say the rule is intended to implement the Comprehensive Outbound Investment National Security Act passed by Congress in 2025, applies only to investments exceeding $50,000, and will be open for public comment before the final rule is issued.
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Oct 23
Fortune AI
The U.S. Treasury Department plans to expand restrictions on investments in sensitive technologies such as AI and supercomputing related to China
The U.S. Treasury Department on Thursday proposed new rules to expand restrictions on U.S. capital investment in supercomputing, artificial intelligence, biotechnology, hypersonic systems and other fields in countries of concern including China, Russia and North Korea, with AI following Trump's preferred term "superintelligence." The rules are intended to implement the Comprehensive Outbound Investment National Security Act passed by Congress in 2025, apply only to investments exceeding $50,000, exclude financial investments such as stock purchases, and will be open for public comment before the final rules are issued. The Chinese Foreign Ministry responded that the U.S. side should abide by the principles of the market economy and stop interfering in normal economic and trade cooperation between enterprises.
Rohan PaulSelected
The U.S. Treasury Department proposes banning Americans from investing in Chinese companies that develop any AI system
The U.S. Treasury Department proposes banning Americans from investing in Chinese companies that develop any AI system. Current rules only restrict investment in the most powerful Chinese AI models; smaller AI projects can still receive funding after reporting to the Treasury Department. The new proposal would comprehensively ban such AI investment and add high-bandwidth memory, photonic chips and radiation-hardened chips to the banned chip categories. The proposal also adds two prohibited investment areas, hypersonic weapons and biotechnology (including brain-computer interfaces and automated laboratory software), and expands the restricted countries from China to Russia, Iran, North Korea and Cuba; purchases of public stocks, index funds or small fund shares of no more than $2 million are still allowed, so it mainly affects venture capital and private equity deals, and the Treasury Department will not publish a banned list, so investors must check each transaction themselves.
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