According to Legis’ Editorial, U.S. investors and companies that put money into artificial intelligence, semiconductors, quantum computing, hypersonic systems, high-performance computing, or biotechnology firms in six countries would face new federal notification requirements or outright deal bans under a rule the Treasury proposed Monday.

The proposal would expand the existing outbound investment program from three technology sectors and one country of concern to six sectors and six countries.

Treasury says the rule implements the Comprehensive Outbound Investment National Security (COINS) Act, enacted December 18, 2025, as part of the National Defense Authorization Act for Fiscal Year 2026, which added Title VIII to the Defense Production Act of 1950.

The Legis further reports that Secretary Scott Bessent described the proposal as strengthening the program while providing investors clarity and an opportunity to comment, according to a Treasury press release.

China’s Foreign Ministry spokesperson Mao Ning criticized the biotechnology coverage, saying that expanding national-security concepts and restricting trade and investment “serve no one’s interests,” and said China would monitor developments and take measures to safeguard its interests, according to the Associated Press.

Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, told the AP that the proposal signals Washington is tracking where U.S. capital flows and recognizes that investment can accelerate military-relevant capabilities.

“Today, 31 C.F.R. Part 850 covers only the People’s Republic of China, including Hong Kong and Macau, across three technology sectors, and allows for both civil and criminal penalties,” the outlet adds.

The proposed rule would create a new 31 C.F.R. Part 851 to implement the COINS Act framework; because Title VIII includes only civil penalty language, criminal penalties would be removed, though civil penalties up to the maximum set by the International Emergency Economic Powers Act and compelled divestment would remain.

“Part 850 would not be repealed; it would remain in force for activities occurring between January 2, 2025, and the effective date of any final rule.

“Countries of concern under the proposed rule would include the People’s Republic of China, Cuba, Iran, North Korea, Russia, and Venezuela.”