China urges US to halt proposed expansion of outbound investment curbs

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1. 1h ago

   China Urges US to Halt Proposed Outbound Investment Curbs

   The Chinese commerce ministry urged the United States to stop expanding restrictions on American investments in China. Beijing stated that the proposed rule targeting sensitive technologies would disrupt trade ties and damage bilateral economic relations. Meanwhile, the US Treasury proposed a rule to crack down on high-tech investments in China and other adversaries, while simultaneously dropping Venezuela from countries facing outbound investment restrictions. The newly proposed restrictions sweep biotech into the COINS Act framework, though initial reports indicate it spares major pharmaceutical licensing deals.

   Why it matters

   The tensions mark a fresh front in the ongoing trade dispute between the United States and China, focusing heavily on high-technology and biotechnology sectors. Washington aims to restrict capital flows that could enhance the technological and military capabilities of adversaries. China argues that these unilateral moves politicize economic and trade issues, threatening the stability of global supply chains and economic cooperation.

   What is confirmed

   • The Chinese commerce ministry urged the United States to stop expanding restrictions on American investments in China.
   • The US Treasury proposed a rule to crack down on high-tech investments in China and other adversaries.
   • The US Treasury dropped Venezuela from countries facing outbound US investment restrictions.
   • The Chinese commerce ministry stated that the proposed rule on sensitive technologies would disrupt trade ties.

   Still unconfirmed

   • The newly proposed restrictions under the COINS Act will spare Big Pharma's China licensing deals.

   What to watch next

   • Finalization and formal implementation of the US Treasury outbound investment rules.
   • Further regulatory or retaliatory measures from Beijing regarding US trade and technology restrictions.
   Sources used for this update (20)

   1. Reuters — US Treasury drops Venezuela from countries facing outbound US investment restrictions
   2. Bloomberg.com — US Proposes Curbs on Investment in Chinese Biotech Firms
   3. AP News — US Treasury proposes a rule to crack down on high-tech investments in China, other adversaries
   4. Politico — Biotech investment is the new front in the U.S.-China trade fight
   5. Financial Times — US Treasury proposes tighter rules on investing in sensitive Chinese tech
   6. Fierce Biotech — Treasury sweeps biotech into proposed COINS Act restrictions, but spares Big Pharma’s China licensing deals
   7. STAT — Treasury proposes major restrictions to U.S. investment in Chinese biotech sector
   8. Bloomberg — China Hits Back at US Proposal to Tighten Investment Limits
   9. Reuters — China urges US to halt proposed expansion of outbound investment curbs
   10. Endpoints News — Post-Hoc Live: Did the US just kill off China biotech deals?
   11. PBS — Treasury proposes rule to curb high-tech investments in China and other adversaries
   12. Global Times — Washington's 'shutdown' is choking off its own future: Global Times editorial
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