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Congress·In Committee·3 months ago

Senate Bill Would Give Treasury Power to Block U.S. Tech Investments in China, Other Rival Nations

Also known as: Comprehensive Outbound Investment National Security Act of 2025

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Mixed Impacts(2)
Small Business Owner
Neutral
Gig Worker
Neutral

Key Points

  • Would let the Treasury Department block certain U.S. investments tied to sensitive technologies in “countries of concern,” like advanced chips, AI, quantum, supercomputing, and hypersonics.
  • Would require many U.S. investors (and their foreign-controlled companies) to notify Treasury within 30 days after completing covered deals in listed tech areas, unless the deal is fully banned.
  • Lets the President restrict U.S. people from buying significant amounts of stock or debt in certain China-linked defense or surveillance companies, with penalties for breaking the rules.
  • Creates new enforcement tools, including civil penalties and the ability to force divestment (selling off an investment) if a banned deal happens.
  • Funds enforcement and outreach by authorizing $150 million per year for two years for Treasury (with transfers to Commerce), and the law would expire after 7 years.
National SecurityTradeArtificial IntelligenceTechnology

Milestones

2 milestones2 actions
Dec 17, 2025Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Dec 17, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Soon after the bill becomes law

Treasury and Commerce ramp up staffing and outreach to explain the new outbound investment rules

Businesses and investors start seeing new guidance, webinars, and compliance expectations; some deals may be paused while lawyers review risk

After Treasury completes a public rulemaking process

Treasury issues rules that can prohibit certain outbound investments in “prohibited technologies”

Some private investments or joint ventures connected to countries of concern (especially in advanced chips, AI, quantum, supercomputing, hypersonics) could be blocked

No later than 450 days after the bill becomes law

Treasury issues the mandatory notification rules (deadline: 450 days after enactment)

Companies and investors may have to file a written notice within 30 days after closing certain deals, unless the deal type is fully prohibited

As part of Treasury’s regulations

Treasury launches a process to request confidential “non-binding feedback” on whether a deal is covered

Before signing a deal, companies can ask Treasury for a read on whether they must notify or whether the deal might be prohibited, lowering guesswork

After regulations take effect and a compliance window passes

Treasury begins enforcing prohibitions/notifications, including civil penalties and possible forced divestment

If a covered deal happens without permission or required notice, Treasury can penalize the U.S. person and may require selling out of the investment

1 year after the bill becomes law, then yearly

Trump (as President) submits the first sanctions-related report to Congress (1 year after enactment, then annually for 7 years)

More clarity on which foreign persons are treated as covered for sanctions purposes; investors may see new names to avoid

18 months after the bill becomes law, then yearly

Treasury submits the first outbound investment enforcement/notification report to Congress (18 months after Title VIII enactment, then annually)

Over time, the public may learn (at least in summary form) what kinds of tech deals are being flagged, shaping future business planning

2 years after the bill becomes law, then every 2 years

Trump (as President) submits the first report on whether certain PRC-listed entities should be added to the Non-SDN Chinese Military-Industrial Complex list (2 years after enactment)

More companies could be identified for closer scrutiny, making some investment decisions riskier or off-limits

7 years after the bill becomes law

The law sunsets 7 years after enactment unless Congress extends it

If it is not renewed, the special authorities in this act would end; businesses could see rules change again near the sunset date

Related News

2 articles
Military.com·about 2 months ago

COINS Act: Protecting National Security From Overseas Tech Investments

The FY2026 NDAA includes the COINS Act, establishing rigid regulations for outbound investments in tech sectors. It requires U.S. persons to notify Treasury of covered transactions in countries of concern like China, Russia, and Iran, and prohibits deals posing acute national security threats.

C=
China Law & Practice·about 2 months ago

In the News: Reverse CFIUS Codified; Trump Orders CFIUS-Led Tech Company Divestment; and Tighter Drone Regulations

The 2026 NDAA codifies the 'reverse CFIUS' Outbound Investment Security Program. The legislation restricts U.S. investments in Chinese companies involved in AI, quantum computing, and semiconductors, while expanding monitoring programs to counter foreign influence in sensitive tech sectors.

C=

Source Information

Document Type

Congressional Bill

Official Title

Comprehensive Outbound Investment National Security Act of 2025

Bill NumberS 3555
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsor

Cosponsors

(4)
D: 2R: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.