US tightens restrictions on high-tech investments to China, Russia and adversaries

The US Treasury Department unveiled proposed regulations Thursday aimed at curtailing American capital flows into cutting-edge technology sectors in China, Russia, North Korea and other adversarial nations. The restrictions target investments in supercomputing, artificial intelligence, quantum computing and semiconductors—technologies viewed as critical to military advancement.

The regulatory framework builds on measures initiated in 2023 when then-President Joe Biden signed an executive order restricting outbound US investments in sensitive technology sectors. The Treasury Department subsequently established the Outbound Investment Security Programme to implement these controls.

Congress expanded the framework in December 2025 by passing legislation that codified and broadened the investment restrictions. The revised rules now encompass additional technologies and extend coverage to more countries beyond China, explicitly naming Cuba, Iran, North Korea and Russia as target nations.

The US government has pursued this multi-year strategy to prevent adversaries from accessing technologies that could enhance military capabilities. By controlling the flow of capital and expertise to these nations, Washington aims to maintain technological superiority and limit geopolitical rivals' advancement in critical sectors.