The US Treasury has released a proposed rule implementing last year’s Comprehensive Outbound Investment National Security (COINS) Act, adding biotechnology to the sectors subject to restrictions on investment in China. China’s foreign ministry said on the 23rd that the move overstretches the concept of national security and that Beijing would take necessary measures.
According to Taiwan’s Liberty Times, the US is moving to extend outbound investment controls that had covered semiconductors, artificial intelligence and quantum technology to biotech, supercomputing and other fields. US media reports indicate the Treasury published the proposal on the 22nd local time, covering semiconductors and microelectronics, AI systems, quantum, high-performance computing, hypersonics and biotechnology.
광고 문의 · 300×250The COINS Act codified the outbound investment security programme launched by executive order in 2023 and was enacted in December 2025 as part of the fiscal 2026 National Defense Authorization Act. The law does not name biotech but lets the Treasury add sectors by rulemaking. Fierce Biotech reported that the proposal classifies ‘pharmaceutical compounds’, including small molecules, vaccines, cell and gene therapies and monoclonal antibodies, as a prohibited technology.
Covered transactions include equity acquisitions, some convertible debt financing, greenfield investments such as new entities, and joint ventures. Traditional licensing deals, in which US drugmakers buy rights to medicines developed in China, are reportedly excluded. Comments are due by December 7, the effective date of a final rule has not been set, and some details such as any investment threshold could not be confirmed.
Beijing: follow market principles
According to Huanqiu.com, foreign ministry spokesperson Mao Ning told a regular briefing on the 23rd that overstretching the concept of national security, adopting discriminatory measures against specific countries and artificially restricting trade and investment serve no one’s interests. She urged the US to follow market-economy principles, stop interfering in normal business cooperation and maintain the stability of global industrial and supply chains, adding that China would follow developments closely and take necessary measures to protect its legitimate rights and interests.
Washington’s position is that the measures are a national security step to keep US capital from strengthening the military and security capabilities of countries of concern in sensitive technologies. Some in US industry see the proposal as tougher than expected, while others expect its scope could change in the final version. The Treasury is also seeking comment on whether ‘pharmaceutical compounds’ should be narrowed to advanced technologies.