The U.S. Treasury proposed rulemaking under the COINS Act that would sharply restrict future U.S. investments in China’s biotech sector while still allowing U.S. companies to buy rights to medicines invented in China. The proposal would prohibit certain financial transactions with Chinese biotech companies and manufacturers of biotechnology-related equipment and tools. The draft framework adds biotechnology to industries of concern, aligning the sector with restrictions already applied to areas like semiconductors, AI, and quantum technology. The rule’s practical effect will likely depend on final definitions, compliance scope, and whether existing licensing deals are treated differently from new investments. For biotech, the immediate impact is deal friction—particularly in venture financing, joint ventures, and structured investments that have underpinned many cross-border collaborations. Market participants and companies are expected to lobby for carve-outs around research partnerships and licensing structures, especially those that preserve drug access while limiting sensitive technology exposure.