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[U.S. Treasury Department Proposes Expanding Restrictions on Investments in Sensitive Technologies in China and Other Countries]

The U.S. Treasury Department has issued proposed rules to implement the COINS Act, planning to further expand U.S. restrictions on outbound investments in sensitive technology sectors in certain “countries of concern.” The current regime focuses on China-related entities, while the proposed rules would further tighten restrictions in AI, semiconductors, and other areas, and further extend the regulatory framework to more sensitive technologies and countries. In the AI sector, some investments that may still be made after filing under current rules would be further converted into prohibited transactions; with respect to semiconductors, high-bandwidth memory, photonic chips, and radiation-hardened chips would also be included within the scope of stricter restrictions. Meanwhile, biotechnology has been added as a key regulatory area, involving directions such as brain-computer interfaces and automated laboratory software.