Key facts
- Proposed rules for outbound investment screening in China, Russia, and other countries released by US Treasury.
The US Treasury Department proposed rules for screening outbound investments in China, Russia, and other countries, removing Venezuela from the list of nations subject to restrictions. The proposed rules, mandated by the Comprehensive Outbound Investment National Security Act of 2025, are open for public comment until December 7.
The proposed rules signal the US government's intent to maintain pressure on China's technological ambitions and manage national security risks associated with outbound investments in strategic sectors, while also adjusting its approach based on geopolitical shifts like the change in Venezuela's leadership.
The US Treasury Department on Thursday proposed rules for screening outbound investments in China, Russia, and other countries, a list that no longer includes Venezuela. The proposed rules, mandated by the Comprehensive Outbound Investment National Security Act of 2025, grew out of a bipartisan effort begun in 2023. The COINS Act expanded US outbound investment controls, requiring notification or outright bans on certain investments to prevent harm to US national security. The program initially targeted China but was expanded to include Cuba, Iran, North Korea, Russia, and Venezuela under the regime of Nicolas Maduro. Treasury stated Venezuela was dropped because Maduro's government no longer exists following his capture by US forces in January, and the current government led by his deputy, Delcy Rodriguez, does not meet the definition. However, the proposed rule could still apply to certain Venezuelan entities. Treasury Assistant Secretary Chris Pilkerton said the program aims to monitor and potentially prohibit investments that pose risks to US national security, considering networks and supply chains beyond just the money involved. The rules would target specific investments in dual-use technologies benefiting military programs, surveillance states, and countries with human rights abuses, while allowing exceptions for publicly traded companies and transactions under $50,000. Biotechnology was added as a restricted sector, alongside advanced semiconductors, AI, quantum information technologies, high-performance computing, and hypersonic systems. Investments in artificial intelligence technologies in target countries will be banned due to rapid advances.
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