US issues first outbound investment fine over Chinese robotics AI deal
The US Treasury on Wednesday announced its first penalty under rules governing American investment in sensitive Chinese technologies, revealing a US$200,000 fine against the parent of Plug and Play Tech Centre for failing to report an investment in a Shanghai robotics AI company. The Treasury said on Wednesday that Amidi, LLC failed to submit a required notification after its Chinese fund…
On Wednesday, the US Treasury announced its inaugural penalty under regulations controlling American investment in certain Chinese technologies, imposing a $200,000 fine on Amidi, LLC, the parent company of Plug and Play Tech Centre. The fine arose from Amidi's failure to report an investment in a Shanghai-based robotics AI firm on April 19, 2025, which amounted to approximately $92,478.
The Treasury revealed that Amidi, LLC had neglected to submit the requisite notification following its Chinese fund subsidiary's investment in Shanghai Qiongche Intelligent Technology Company Limited, commonly referred to as Noematrix. The penalty was issued in July but came to light on Wednesday, surpassing double the investment sum.
This case marks the initial instance of enforcement under the Outbound Investment Security Programme, initiated in January 2025. This program governs specific US investments in Chinese AI, semiconductor, and quantum computing enterprises, prohibiting certain transactions and necessitating notification for others. It also covers investments made through offshore entities managed by US individuals.
The Treasury identified the violation as a failure to notify regarding the transaction, without labeling the investment as prohibited or accusing Noematrix of misconduct. Amidi is the parent entity of Plug and Play Tech Centre, as stated by the Treasury.
Noematrix specializes in "embodied AI": models and software enabling robots to comprehend their environment and execute physical tasks. The company's applications encompass logistics, household services, and food processing. Its investment portfolio includes participation from Plug and Play China, Prosperity7 Ventures, a fund linked to Aramco Ventures, and other investment entities.
In his statement, US Treasury Secretary Scott Bessent emphasized the department's dedication to safeguarding US national security via investment security measures. Assistant Secretary for Investment Security, Christopher Pilkerton, highlighted the program's objective of addressing advancements in key technologies by countries of concern that may pose national security threats.
He pledged ongoing vigilance in ensuring investor compliance with the program's requirements. The Treasury's discovery of the transaction stemmed from routine compliance and market surveillance, but the announcement did not disclose the methodology employed to determine the $200,000 penalty.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
