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Treasury sweeps biotech into proposed COINS Act restrictions, but spares Big Pharma’s China licensing deals

The US Department of the Treasury issued a notice of proposed rulemaking to implement the Comprehensive Outbound Investment National Security Act, sweeping biotechnology into proposed restrictions on high-tech investments involving China and other countries of concern. While the proposed rules target sensitive Chinese tech sectors including biotech and artificial intelligence, they notably leave major pharmaceutical licensing deals untouched. This regulatory action leaves investors guessing about how cross-border licensing and joint venture arrangements will be treated going forward, even as China hits back against the proposed investment limits.

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  • ✓ The US Department of the Treasury released a notice of proposed rulemaking to implement the Comprehensive Outbound Investment National Security Act.
  • ✓ The proposed rules restrict certain US investments in biotechnology in China and other countries of concern.
  • ✓ The Treasury dropped Venezuela from countries facing outbound US investment restrictions.
🛡️ Source Corroboration: 14 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

The US Treasury proposed incorporating biotechnology into outbound investment restrictions under the COINS Act while exempting specific pharmaceutical licensing deals.

Live updates

  1. Treasury Restricts Biotech Under COINS Act, Spares Big Pharma

    The US Department of the Treasury issued a notice of proposed rulemaking to implement the Comprehensive Outbound Investment National Security Act, sweeping biotechnology into proposed restrictions on high-tech investments involving China and other countries of concern. While the proposed rules target sensitive Chinese tech sectors including biotech and artificial intelligence, they notably leave major pharmaceutical licensing deals untouched. This regulatory action leaves investors guessing about how cross-border licensing and joint venture arrangements will be treated going forward, even as China hits back against the proposed investment limits.

    Why it matters

    Congress previously established a framework for evaluating and restricting outbound investments involving adversaries by identifying five technology categories and granting the Treasury authority to add categories. The new rulemaking outlines tighter rules for sensitive technology sectors in China. Meanwhile, the Treasury dropped Venezuela from the list of countries facing outbound investment restrictions.

    What is confirmed

    • The US Department of the Treasury released a notice of proposed rulemaking to implement the Comprehensive Outbound Investment National Security Act.
    • The proposed rules restrict certain US investments in biotechnology in China and other countries of concern.
    • The Treasury dropped Venezuela from countries facing outbound US investment restrictions.

    Still unconfirmed

    • Investors remain unsure how cross-border licensing and joint venture deals will be handled under the new restrictions.

    What to watch next

    • Finalization of the Treasury proposed rules for the COINS Act
    • Further regulatory guidance on how cross-border pharmaceutical licensing and joint venture deals will be evaluated
    • Official responses from Chinese authorities regarding the tightened investment limits
    Sources used for this update (14)
    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. Financial Times — US Treasury proposes tighter rules on investing in sensitive Chinese tech
    5. Fierce Biotech — Treasury sweeps biotech into proposed COINS Act restrictions, but spares Big Pharma’s China licensing deals
    6. Barron's — U.S. Treasury Wants to Rein In Deals for Chinese Biotech and AI
    7. STAT — Treasury proposes major restrictions to U.S. investment in Chinese biotech sector
    8. Axios — Trump's China biotech rules leave investors guessing
    9. Endpoints News — Treasury expected to be harder on China biotech deals in new rules
    10. Bloomberg — China Hits Back at US Proposal to Tighten Investment Limits
    11. www.americanactionforum.org — New COINS Act Regulations Restricting Biotechnology ...
    12. startupfortune.com — Treasury proposes adding biotech to China investment ...
    confidence 90%
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