The U.S. Treasury proposed regulations under the Comprehensive Outbound Investment National Security Act (COINS) that would sharply restrict future U.S. investments in much of China’s biotech sector. The proposed rule would bar certain U.S. companies from entering financial transactions with Chinese biotech entities and biotech-related equipment manufacturers. Treasury’s proposal would add biotechnology to the list of industries subject to COINS restrictions alongside areas like semiconductors, AI, and quantum technologies. The framework is designed to implement national security controls while still allowing American drugmakers to buy rights to medicines invented in China. Dealmakers and biotech leaders have been watching how broad the prohibitions would be, given the scale of cross-border licensing and M&A activity over the last two years. The proposed rule’s scope—particularly for JV and financing structures—could reshape how future partnerships are structured and funded, and it is expected to draw significant industry feedback before any final rulemaking.