The U.S. Treasury Department has proposed broader limits on American investment in technology companies in China, Russia, North Korea and other countries of concern. The proposal would expand existing rules covering semiconductors, quantum technologies and artificial intelligence.
COINS Act widens technology scope
Treasury issued the proposal on October 22 under the Comprehensive Outbound Investment National Security Act, or COINS Act. Congress passed the law as part of the Fiscal Year 2026 National Defense Authorization Act. It directs Treasury to prohibit some outbound investments and require notifications for others, according to the department’s announcement.
Under the proposal, the expanded program would cover semiconductor technologies, artificial intelligence systems, quantum information technologies, high-performance computing, hypersonic systems and biotechnology. Treasury’s proposed technical definitions include “superintelligence systems” within the artificial-intelligence category.
AI and chip deals targeted
The proposed rules would prohibit certain transactions and require reports on others involving covered foreign companies. They also describe covered foreign persons, excepted transactions, due-diligence requirements and potential penalties.
The Associated Press reported that the proposal would add investment controls to other U.S. restrictions affecting trade and technology transfers to China and other adversaries. As a result, companies could need to review more international transactions for compliance.
Comments due December 7
The proposal is not yet a final rule. Treasury said it will accept public comments before issuing final regulations, which will establish the program’s effective date. The department lists December 7, 2026, as the comment deadline on its outbound investment program page.
Treasury’s existing outbound-investment rules remain in force until the new regulations are issued. The final rule will determine how the agency defines covered AI systems, investment exemptions and the foreign entities subject to restrictions.
References
- Associated Press. (2026, October 22). US Treasury proposes a rule to crack down on high-tech investments in China, other adversaries. AP News. https://apnews.com/article/b742c292ff8eb19e6a4c8cf03d4d66b9
- U.S. Department of the Treasury. (2026, October 22). Treasury issues proposed rule to implement Comprehensive Outbound Investment National Security Act. https://home.treasury.gov/news/press-releases/sb0667
- U.S. Department of the Treasury. (n.d.). Frequently asked questions: Outbound Investment Security Program. Retrieved October 23, 2026, from https://home.treasury.gov/policy-issues/international/outbound-investment-program/frequently-asked-questions
- U.S. Department of the Treasury. (n.d.). Outbound Investment Security Program. Retrieved October 23, 2026, from https://home.treasury.gov/policy-issues/international/outbound-investment-program