TREASURY DOUBLES SECTORS IN CHINA INVESTMENT CURBS

The US Treasury proposed a rule on October 22 that expands its Outbound Investment Security Program from three restricted technology sectors to six. The original version only covered semiconductors, quantum computing and artificial intelligence; the new draft adds supercomputing, hypersonic systems and biotechnology, widening the net on US capital flowing into China and other countries of concern. Treasury Secretary Scott Bessent said the goal is to stop adversaries from using American money to build critical technology. China-exposed funds like $FXI sit squarely inside that wider net.