Treasury proposes rules to widen limits on U.S. investment in Chinese tech; Beijing says it firmly opposes the plan

As of 4:09 p.m. ET, Saturday, Oct. 24, 2026

The U.S. Treasury Department has proposed new rules to carry out the Comprehensive Outbound Investment National Security (COINS) Act, which requires U.S. persons to notify Treasury of some investments in certain foreign technology companies and bars others outright, according to a Treasury release dated Oct. 22.

China's Commerce Ministry said Saturday that it firmly opposes the proposal and reserves the right to take countermeasures, according to a statement posted on the ministry's website (translated from Chinese).

What Treasury proposed

Congress passed the COINS Act as part of the Fiscal Year 2026 National Defense Authorization Act. Treasury said the law codifies the government's approach to regulating certain outbound investments by U.S. persons and builds on its existing Outbound Investment Security Program.

The proposed rule sets out technical specifications for the covered technologies in semiconductors and microelectronics, quantum information technologies, super intelligence systems, hypersonic systems, high-performance computing and supercomputing, and biotechnology, the release said. It also covers what information investors must give Treasury, the standard for a reasonable and diligent inquiry before a deal, and the penalties for violations.

"The proposed regulations would strengthen the existing Outbound Investment Security Program to prevent our adversaries from using U.S. investment to develop critical technologies that threaten U.S. national security," Treasury Secretary Scott Bessent said in the release.

The Federal Register lists the proposed rule for publication on Oct. 26 and says written comments must be received by Dec. 7, 2026. Treasury said final rules will follow at a later date and will set the date the program takes effect.

China's response

A ministry spokesperson said the proposed rule discriminatorily widens the scope of investment restrictions on China and increases their force. The spokesperson called it a typical case of overstretching national security that runs against an important consensus reached by the two countries' leaders and disrupts normal business between Chinese and U.S. companies, the statement said (translated from Chinese).

The ministry urged the United States to respect market principles, stop overstretching the concept of national security and refrain from politicizing and weaponizing economic and trade issues, according to China Daily's English report of the statement.