US Treasury Proposes Banning Investments in Chinese Biotech and Brain-Computer Startups

The US Treasury Department proposed adding biotechnology and brain-computer interfaces to its list of restricted investments in foreign adversaries. The proposed regulations would require American investors to notify the government about certain transactions with Chinese biotech companies, while prohibiting other deals entirely. These new restrictions expand an existing US investment curb program that currently targets artificial intelligence, semiconductors, and quantum computing. The Treasury Department is seeking public comments before issuing a final rule, meaning the restrictions will not take effect until the regulatory process is complete. US pharmaceutical companies are increasingly turning to China to license promising treatments and replenish their drug pipelines, a strategy that could be complicated by the new financial constraints.