Business · Trade · 2 hrs ago
China urges US to halt proposed expansion of investment restrictions
The US Treasury proposed expanding limits on American investment abroad, including investments involving China.
The proposal would add biotechnology and widen coverage of high-performance computing and hypersonic systems; existing limits already cover some investment in semiconductors, quantum technology and artificial intelligence.
China's Commerce Ministry strongly opposed the proposal, saying it unfairly expands restrictions on investment linked to China.
Beijing said the rules could disrupt normal business ties and conflict with understandings reached by the two countries' presidents.
China reserved the right to take countermeasures, but did not specify what they might be.
The US Treasury said the rules are intended to stop US capital from supporting strategic technologies that could threaten national security, and are not limited to China.
The proposal is open for public comment, and China said it would closely monitor what happens next.
China’s Ministry of Commerce urged the United States to stop expanding restrictions on American investments in China.
The proposed U.S. rules would add biotechnology and extend coverage to high-performance computing and hypersonic systems.
Beijing said the proposal was discriminatory, could harm bilateral economic ties and reserved the right to take unspecified countermeasures.
The U.S. Treasury says the measures aim to prevent American capital from supporting foreign adversaries’ development of strategic technologies that could threaten U.S. national security.
Existing U.S. restrictions already cover certain investments involving China in semiconductors, quantum technologies and artificial intelligence.
- Who
- China’s Ministry of Commerce and the U.S. Treasury Department.
- What
- China opposed a proposed expansion of U.S. restrictions on American investments related to China.
- When
- China issued its response on Saturday, October 24, 2026. The Treasury proposal was issued on Thursday; sources differ on whether that was October 22 or 23.
- Where
- The proposed restrictions concern U.S. investments related to China.
- Why
- The U.S. says the measures are intended to prevent American capital from supporting development of strategic dual-use technologies that could threaten its national security. China says the proposal could harm economic ties and runs counter to understandings between the countries’ leaders.
China
United States
Purpose of proposed restrictions
China
China says they unfairly expand investment restrictions and politicize economic issues.
United States
The U.S. says the measures aim to prevent capital from supporting foreign adversaries’ development of strategic technologies that could threaten national security.
Effect on bilateral ties
China
China warns the proposal could damage economic and trade relations and disrupt cooperation between businesses.
United States
The Treasury’s stated purpose is to address national security risks; the sources do not report a U.S. response to China’s warning about bilateral ties.
The U.S. Treasury issued a proposal to update its outbound investment security program; sources give different dates.
China’s Ministry of Commerce opposed the proposal and said Beijing reserved the right to take unspecified countermeasures.
- Proposed addition
- Biotechnology
- Proposed expanded coverage
- High-performance computing and hypersonic systems
- Existing restricted sectors
- Semiconductors, quantum technologies and artificial intelligence
- China’s response
- Opposition and reservation of the right to take unspecified countermeasures
- Treasury proposal date
- Thursday, October 22 or 23, 2026; sources differ
6 sources
China urges US to halt proposed expansion of outbound investment curbs
بكين تعارض توسيع القيود الأمريكية على الاستثمارات في الصين
China pede que EUA interrompam novas restrições à investimento estrangeiro
بكين تحث واشنطن على عدم توسيع القيود على الاستثمارات الأميركية في الصين
中国商务部回应美发布新版对外投资限制拟议规则
What people are saying
The proposed rule discriminatorily expands restrictions on investment in China, increases the intensity of restrictions, and is a typical practice of overstretching the concept of national security.