U.S. lawmakers are advancing efforts to restrict investments in China, primarily driven by national security concerns. A significant development is the implementation of the U.S. Treasury's Final Rule, which took effect on January 2, 2025. This regulation specifically targets outbound investments in certain advanced technology sectors in China, including semiconductors, quantum computing, and artificial intelligence (AI). The rule aims to prevent U.S. investments from supporting the Chinese military's technological advancements, reflecting a bipartisan consensus on the need to safeguard national security.

In addition to the Treasury's regulations, Congress is currently considering broader legislative measures, such as the Comprehensive Outbound Investment National Security Act of 2024 (COINS Act). This proposed legislation seeks to expand restrictions on U.S. investments in China across 15 critical technologies deemed sensitive. Lawmakers have expressed concerns that American financial resources and intellectual property could inadvertently bolster China's military capabilities.

The urgency of these measures is underscored by rising tensions between the U.S. and China, with lawmakers emphasizing the need for proactive steps to mitigate potential threats posed by Chinese technological advancements. As part of this ongoing effort, additional provisions are being discussed that would mandate reviews of Chinese-made consumer technology for national security risks and scrutinize real estate purchases near sensitive sites.

These developments mark a significant shift in U.S. policy towards China, reflecting a growing recognition of the strategic implications of foreign investment in advanced technologies.

ANI