COINSAct News & Analysis

US Proposes Expansion of Curbs on Chinese Biotech and Tech Investments

The US Treasury has proposed new rules to restrict outbound investments in Chinese biotech firms and sensitive high-tech sectors. These measures include the COINS Act, which aims to limit American capital flowing into Chinese biotech companies but excludes large pharmaceutical licensing deals from the restrictions. China has urged the US to halt this proposed expansion of outbound investment curbs, signaling escalating tensions over technology and biotechnology investments. The US Treasury’s rule aims to crack down on investments deemed sensitive for national security, targeting sectors beyond prior restrictions. This move reflects growing US efforts to control the transfer of advanced technology and bio-related investments to China. Investors could see changes in capital allocation and cross-border deal dynamics as these rules affect who can invest and where. The tightening of regulations could reduce investment opportunities in Chinese biotech and technology firms for US investors.