The U.S. Treasury proposed barring Americans from investing in Chinese companies that develop any AI system. Under the current rule, Americans can’t ...

The U.S. Treasury has proposed barring Americans from investing in any Chinese company developing AI systems, a major expansion of the current outbound-investment rule that only covers the most powerful Chinese AI models and allows smaller deals with reporting. The proposal would also add high-bandwidth memory, photonic and radiation-hardened chips, hypersonic weapons, and biotech including brain-computer interfaces to the banned list, and extend coverage from China alone to Russia, Iran, North Korea and Cuba. Why it matters: public stocks, index funds and fund stakes up to $2M would stay allowed, so the rule would fall mainly on venture and private-equity investors — a tightening that could reshape how AI and chip startups get funded.

• Rohan Paul2026-10-23 09:44