Washington DC [US], October 24 (ANI): The United States Department of the Treasury has proposed expanding restrictions on American investments in Chinese companies operating in artificial intelligence (AI), biotechnology and other advanced technology sectors, citing national security concerns. The proposed measures would also extend the existing investment-control programme to Cuba, Iran, North Korea and Russia, according to a report by The Epoch Times.

The proposal, announced on October 22, seeks to prevent American capital, business expertise and commercial connections from supporting the development of technologies that could strengthen the military, intelligence and surveillance capabilities of countries considered foreign adversaries by Washington, The Epoch Times reported.

Under the proposed framework, certain investments would be prohibited, while others would be permitted subject to mandatory reporting to the Treasury Department, generally within 30 days of completion. Ordinary purchases of publicly traded stocks and investment funds would largely remain exempt, subject to specified conditions, the report said.

The proposed changes would implement legislation passed by the US Congress in December 2025 to expand the country's existing outbound investment restrictions. However, the new rules have not yet taken effect, and the Treasury Department is accepting public comments until December 7, The Epoch Times reported.

The existing programme began in January 2025 under a 2023 presidential executive order, initially targeting selected American investments in Chinese companies involved in AI, semiconductors and quantum technologies.

The revised proposal would broaden restrictions on investments in AI companies, including certain transactions that previously required only notification to the Treasury Department. According to The Epoch Times, the department has proposed removing requirements for investors to assess specific technical capabilities or computing-power thresholds of AI systems, arguing that rapid advances in algorithms have made such measurements less reliable.

The proposed rules would also strengthen restrictions involving advanced computer chips, quantum technologies, high-performance computing and hypersonic systems. Certain investments in companies linked to China's military could face outright prohibitions if the firms, their affiliates or subsidiaries appear on specified US government lists, including lists covering Chinese military companies and biotechnology firms of concern.

The Treasury Department estimates that approximately 200 investment transactions annually could fall under the proposed regulations. According to The Epoch Times, the estimate is based on an analysis of around 300 investments made by nearly 230 US-based investors over three years, with an additional adjustment to account for potentially unreported transactions. (ANI)