US Treasury proposes tighter outbound investment rules covering AI, chips, quantum, hypersonics and now biotech in China

The US Treasury on 22 October issued a proposed rule implementing the COINS Act, passed in the FY2026 defense bill, which codifies and expands its Outbound Investment Security Program. US persons would have to notify Treasury of, or be barred from, certain investments in companies from countries of concern such as China working on semiconductors, AI systems, quantum, high-performance computing and hypersonics; Treasury has also added biotechnology. The rules would include a process for confidential non-binding feedback on potential deals and a national-interest exemption. The existing rules keep applying until the final regulations take effect; comments are due by 7 December 2026.