U.S. Treasury tightens outbound investment rules on AI, supercomputing in China

The U.S. Treasury on October 22, 2026 issued a Notice of Proposed Rulemaking to update the Outbound Investment Security Program, extending restrictions on American investments in AI, supercomputing, and other dual-use technologies flowing to China, Russia, and other designated countries. The proposed rule implements the Comprehensive Outbound Investment Security (COINS) Act, which Congress passed as part of the Fiscal Year 2026 National Defense Authorization Act. The COINS Act codifies the federal government's authority to regulate certain outbound investments by U.S. persons and builds on the existing Outbound Investment Security Program. Congress determined that restricting certain U.S. outbound investments into dual-use strategic technologies is necessary to prevent those technologies from benefiting a foreign adversary's military modernization efforts, surveillance states, and human rights abuses. U.S. Treasury stated the implementation is consistent with maintaining a strong, open investment environment that benefits the economy while supporting national security interests. The rule targets American high-tech investments including supercomputing directed toward countries of concern. The Financial Times separately reported on the proposal's focus on sensitive Chinese technology investment. The rulemaking converts what had been an executive-branch program into a congressionally mandated regime, giving the restrictions a more durable legal foundation and potentially broadening their scope beyond the original executive order framework.

(Source：Vector Wire)