The Chinese commerce ministry issued a formal statement on Saturday opposing the U.S. Treasury Department's Thursday proposal to expand restrictions on American outbound investments in China, marking an escalation in US-China trade tensions [1]. The Treasury's updated security program adds biotechnology to the list of restricted sectors and expands coverage of high-performance computing and hypersonic systems, building upon existing restrictions that already covered semiconductors, quantum technologies, and artificial intelligence [1].
Beijing characterized the proposal as "discriminatory" and said it would "intensify curbs" on China-related investment restrictions, arguing that the measures would damage bilateral economic ties and contradict recent consensus reached between the countries' presidents, who have met twice in the past six months [1]. The Chinese commerce ministry firmly opposed the U.S. proposal and reserved the right to take unspecified countermeasures in response [1]. The U.S. Treasury has justified the measures as necessary to prevent American capital from supporting foreign adversaries' development of dual-use strategic technologies that could threaten U.S. national security, though the program is not exclusively focused on China [1].
This development represents a significant escalation in technology-related trade restrictions between the world's two largest economies, with China's threat of unspecified countermeasures suggesting potential retaliatory actions that could further strain bilateral economic relations and create uncertainty for multinational corporations operating in both markets.
CONCLUSION
China's formal opposition to the expanded U.S. outbound investment restrictions signals deepening US-China technological decoupling and heightened trade tensions. The threat of Chinese countermeasures and the expansion of restricted sectors to include biotechnology could have significant implications for multinational corporations and cross-border investment flows in sensitive technology sectors.