Proposed new restrictions on US outbound investment in China have raised concerns among business leaders and industry experts, who warn that broader investment controls could disrupt cross-border cooperation, particularly in emerging technologies and biotechnology.
The proposed regulations, recently released by the US Department of the Treasury for public comment, would expand existing restrictions on American investment in certain Chinese industries. The changes would add biotechnology to the list of restricted sectors while extending controls on high-performance computing and hypersonic technologies. The measures would also apply to other countries designated by Washington as countries of concern.
China’s Ministry of Commerce expressed strong opposition to the proposal, arguing that the expanded restrictions could undermine international trade and investment cooperation. The ministry described the measures as an excessive application of national security considerations and stated that China reserved the right to take corresponding action.
Chinese officials emphasized that the country’s large consumer market, industrial capabilities and investment opportunities continue to attract international businesses despite growing geopolitical uncertainty.
The proposed restrictions have also prompted concerns within the US biotechnology industry. Analysts warn that tighter investment controls could make it more difficult for American pharmaceutical and biotechnology companies to access Chinese research capabilities, emerging technologies and potential development partners.
John Crowley, president and CEO of the Biotechnology Innovation Organization, cautioned that overly broad investment restrictions could create uncertainty for investors and innovators while potentially weakening the competitiveness of the US biotechnology sector.
Business representatives have also highlighted the importance of maintaining international research and industrial partnerships. Jonah Kirkwood, senior vice-president of California-based Agilent Technologies, noted that stronger local capabilities and more stable China-US relations could support global innovation by combining China’s manufacturing and research strengths with international expertise.
Experts believe that managing economic differences while preserving cooperation will be important for both countries. Zhu Feng, a professor at Nanjing University, emphasized the need for China and the United States to maintain communication, manage strategic disagreements and prevent competition from damaging the broader bilateral relationship.
Despite ongoing trade and investment tensions, American companies continue to demonstrate interest in the Chinese market. According to China’s Ministry of Commerce, US investment in China increased 7.7% year on year during the first nine months of 2026.
The upcoming ninth China International Import Expo (CIIE), scheduled for November 5–10 in Shanghai, will provide another example of continued commercial engagement between the two economies.
Major American companies, including Tesla, Boston Scientific, Rockwell Automation and Nike, are expected to participate in the exhibition. US exhibitors will occupy more than 50,000 square meters of exhibition space, an increase of approximately 1,500 square meters compared with the previous year.
This will mark the eighth consecutive year that American exhibitors have secured the largest exhibition area among participating countries and regions.
US industrial technology company 3M, which has participated in every edition of the CIIE, plans to showcase innovations in automotive technology, electronics, safety solutions, manufacturing materials and automation.
Henry Ding, president of 3M China, said the company continues to regard the CIIE as an important platform for introducing new technologies and developing local partnerships. He also indicated that 3M intends to further strengthen its supply chain network in China.
The developments highlight the contrasting trends shaping China-US economic relations. While Washington is considering additional restrictions on investment in sensitive technologies, American companies continue to pursue opportunities in China’s consumer, manufacturing and innovation markets.
As the proposed rules move through the public consultation process, their potential impact on international investment, technological cooperation and global supply chains remains an important issue for businesses operating across both economies.
