China urges U.S. to halt proposed expansion of outbound investment curbs

China urged the United States to halt a proposed expansion of outbound investment curbs on Chinese sectors today, Nikkei Asia reports. The pushback comes as Washington weighs tightening restrictions that would bar or require notification of U.S. capital flowing into sensitive technologies, a move with immediate implications for cross-border financing. Any expansion could widen the Biden administration’s 2023 program targeting investments tied to semiconductors, artificial intelligence and quantum, intensifying economic friction.

According to Nikkei Asia, Beijing lodged its opposition and called on Washington to stop enlarging the scope of the controls. The U.S. Treasury is drafting implementing rules and Congress is debating broader screening authorities that could reach beyond venture capital and private equity. Watch for draft rule details on covered sectors and deal structures, and for signals from the White House or Treasury on timing for finalizing the curbs. [Developing. This article will be updated.]