The U.S. Treasury wants expanded restrictions on high-tech investments to these ‘countries of concern’

The U.S. Treasury Department unveiled a proposed rule on Thursday to restrict American high-tech investments in China, Russia, North Korea, and other nations deemed "of concern." The initiative, rooted in efforts dating back to 2023 when President Joe Biden signed an executive order limiting U.S. investments in sectors like semiconductors, quantum computing, and artificial intelligence headed to China, has been expanded by Congress in December 2025 to include more technologies and countries, including Cuba, Iran, North Korea, and Russia.

The latest rule encompasses investments in hypersonic systems, supercomputing, biotechnology, and artificial intelligence, though the term "superintelligence" or SI, favored by former President Trump, will be used to describe AI.

Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, emphasized that the rule communicates to markets that Washington is vigilant about U.S. capital flows and the capabilities being fostered. Jason Chipman, a former Justice Department lawyer specializing in cybersecurity, investment rules, and export controls, stated that the regulations will necessitate more robust compliance programs to mitigate risks.

However, the new rule will only apply to investments surpassing $50,000 and will exclude many financial investments, such as stock purchases. Treasury will solicit public comments on the proposal prior to finalizing the rule.

China's Foreign Ministry criticized the U.S., urging it to adhere to market economy principles and cease interfering in normal economic and trade cooperation. The ministry highlighted that overstretching the definition of national security with discriminatory measures against specific countries and artificially restricting trade, economic, and investment activities serve no one's interests. They vowed to closely monitor the situation and take necessary measures to safeguard their interests.

The ongoing economic and tech rivalry between the United States and China, the world's two largest economies, has resulted in restricted exports of sensitive technology and critical products, along with tariffs on each other's products. Despite a temporary truce in December 2025, tensions persist, such as the recent Treasury Department's $200,000 fine against a U.S.-based company for failing to report a $92,500 investment in a Chinese AI and robotics company.