The U.S. Treasury has proposed new restrictions on outbound investment tied to China’s biotech sector under the Comprehensive Outbound Investment National Security Act (COINS). The proposal would bar U.S. companies from entering certain financial transactions with Chinese biotech companies and biotechnology-related equipment manufacturers. The rule is aimed at national-security risk areas and would add biotechnology to a list that already includes sectors such as semiconductors, artificial intelligence, and quantum technology. The proposal is being framed as an implementation step for COINS, with the specific scope and timelines expected to be central to industry response. For biotech, the practical impact centers on dealmaking capacity—licensing, partnerships, and financing arrangements where exposure to Chinese biotech counterparties is required.