--- title: Treasury proposes broader ban on US investment in... description: The US Treasury proposed a rule widening limits on American investment in sensitive technology abroad, carrying out the COINS Act. Written comments are due by... canonical: https://daily.dev/posts/treasury-proposes-broader-ban-on-us-investment-in-chinese-ai-chips-and-biotech-icvlovwwt twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Treasury proposes broader ban on US investment in Chinese AI, chips and biotech | daily.dev og:description: The US Treasury proposed a rule widening limits on American investment in sensitive technology abroad, carrying out the COINS Act. Written comments are due by... og:url: https://daily.dev/posts/treasury-proposes-broader-ban-on-us-investment-in-chinese-ai-chips-and-biotech-icvlovwwt og:image: https://api.daily.dev/og/posts/IcvlovWWt.png og:image:alt: Treasury proposes broader ban on US investment in Chinese AI, chips and biotech og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Treasury proposes broader ban on US investment in Chinese AI, chips and biotech **[Collections](https://daily.dev/sources/collections)** · 2 min read · 1 upvotes · 0 comments ## Summary The US Treasury proposed a rule widening limits on American investment in sensitive technology abroad, carrying out the COINS Act. Written comments are due by December 7. It would ban US investment in the most powerful Chinese AI models, ending the smaller-deal reporting option for those, and renames 'AI systems' to 'super intelligence systems' per Trump's September 29 executive order. Restricted chip types would expand to include high-bandwidth memory, photonic chips and radiation-hardened chips, with new bans on hypersonic weapons and biotech. The rule's scope grows from China, Hong Kong and Macau to also cover Cuba, Iran, North Korea and Russia. Public stocks, index funds and fund stakes up to $2M stay permitted. Treasury won't publish a banned-companies list, leaving investors to vet deals themselves, with violations risking civil penalties under IEEPA. ## Content The US Treasury has proposed a rule that would widen the limits on American investment in sensitive technology abroad. It carries out the COINS Act, and written comments are due by December 7. ## What changes for AI Under the current rule, Americans can't invest in the most powerful Chinese AI models. They can still fund smaller AI projects as long as they report the deal to Treasury. The proposal would end that option and ban those investments outright. It also replaces the term "AI systems" with "super intelligence systems," citing Trump's 29 September executive order. ## Chips, hypersonics and biotech The list of restricted chip types would grow to include high-bandwidth memory, photonic chips and radiation-hardened chips. Two new areas would be banned: hypersonic weapons, and biotech, including brain-computer interfaces and automated lab software. Quantum tech and supercomputing also fall under the draft's scope. ## More countries Today the rule covers only China, along with Hong Kong and Macau. The draft adds Cuba, Iran, North Korea and Russia as "countries of concern." ## What stays allowed Buying public stocks, index funds or small fund stakes of up to $2M would remain permitted. In practice the rule mainly hits venture and private equity deals. ## Enforcement Treasury won't publish a list of banned companies. Investors would have to check each deal themselves. Violations could bring civil penalties up to the maximum under the International Emergency Economic Powers Act, and Treasury could also force investors to sell. ## Questions this post answers ### Will US investors still be able to fund smaller Chinese AI projects under the new Treasury rule? No, the proposed rule would end the current option to fund smaller Chinese AI projects with a reporting requirement, banning those investments outright. Currently Americans can invest in less powerful Chinese AI models if they report the deal to Treasury; the draft rule under the COINS Act eliminates that carve-out entirely. Written comments on the proposal are due by December 7. _Track how tightening outbound investment rules reshape the AI and chip markets on daily.dev._ ### Which countries would be covered by the expanded Treasury outbound investment restrictions? The current rule covers only China, Hong Kong and Macau, but the draft proposal adds Cuba, Iran, North Korea and Russia as 'countries of concern.' The expanded list also broadens restricted technology categories to include hypersonic weapons, biotech like brain-computer interfaces, quantum tech and supercomputing, alongside new chip types such as high-bandwidth memory and photonic chips. _Investors weighing cross-border tech deals can follow these policy shifts on daily.dev._ ### Will the US Treasury publish a list of banned companies under the COINS Act investment restrictions? No, Treasury will not publish a list of banned companies under the proposed rule. Investors are instead responsible for checking each deal themselves to ensure compliance. Violations could bring civil penalties up to the maximum allowed under the International Emergency Economic Powers Act, and Treasury could also force investors to divest. _Teams assessing compliance risk on tech investments can keep up with rules like this on daily.dev._ ## Similar posts on daily.dev - [China plans to block US investment in its top AI firms without government approval](https://daily.dev/posts/china-plans-to-block-us-investment-in-its-top-ai-firms-without-government-approval-b2glxkevk) · The Next Web · 1 upvotes · 0 comments - [US appears open to reversing some China tech bans](https://daily.dev/posts/us-appears-open-to-reversing-some-china-tech-bans-d9sxck8xt) · The Register · 0 upvotes · 0 comments - [US reportedly considering sweeping new chip export controls](https://daily.dev/posts/us-reportedly-considering-sweeping-new-chip-export-controls-w4pfqorjk) · TechCrunch · 0 upvotes · 1 comments --- Tags: [#biotech](https://daily.dev/tags/biotech), [#ai-regulation](https://daily.dev/tags/ai-regulation) [View this post on daily.dev](https://daily.dev/posts/treasury-proposes-broader-ban-on-us-investment-in-chinese-ai-chips-and-biotech-icvlovwwt) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Treasury proposes broader ban on US investment in Chinese AI, chips and biotech","url":"https://daily.dev/posts/treasury-proposes-broader-ban-on-us-investment-in-chinese-ai-chips-and-biotech-icvlovwwt","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/treasury-proposes-broader-ban-on-us-investment-in-chinese-ai-chips-and-biotech-icvlovwwt"},"datePublished":"2026-10-25T11:58:50.503Z","dateModified":"2026-10-25T11:59:30.872Z","description":"The US Treasury proposed a rule widening limits on American investment in sensitive technology abroad, carrying out the COINS Act. 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Currently Americans can invest in less powerful Chinese AI models if they report the deal to Treasury; the draft rule under the COINS Act eliminates that carve-out entirely. Written comments on the proposal are due by December 7. Track how tightening outbound investment rules reshape the AI and chip markets on daily.dev."}},{"@type":"Question","name":"Which countries would be covered by the expanded Treasury outbound investment restrictions?","acceptedAnswer":{"@type":"Answer","text":"The current rule covers only China, Hong Kong and Macau, but the draft proposal adds Cuba, Iran, North Korea and Russia as 'countries of concern.' The expanded list also broadens restricted technology categories to include hypersonic weapons, biotech like brain-computer interfaces, quantum tech and supercomputing, alongside new chip types such as high-bandwidth memory and photonic chips. 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