The Trump administration proposed new rules under the Comprehensive Outbound Investment National Security Act that would sharply limit U.S. financial transactions in the Chinese biotech sector. The proposed approach would prohibit U.S. companies and investors from entering certain financial deals with Chinese biotechnology companies and equipment manufacturers. The Treasury Department said the proposal is intended to implement the COINS law and places biotechnology on a list of industries of concern alongside areas such as semiconductors, AI, and quantum technologies. Reporting indicated that drug companies may still be able to acquire rights to medicines invented in China, even as broader collaboration structures could face increased friction. The proposal puts dealmaking—especially cross-border licensing and funding flows—at the center of biotech risk management for 2026–2027. Companies with China-linked assets may need to reassess transaction pathways and compliance planning.