The U.S. Treasury Department has proposed a new rule to restrict American investments in sensitive technologies like artificial intelligence and supercomputing in countries such as China, Russia, and North Korea. This initiative aims to prevent adversaries from acquiring advanced capabilities that could enhance their military power. The program, initiated by President Biden in 2023, was expanded by a law passed in December 2025, encompassing more technologies and nations, including Cuba and Iran. The proposed rule specifically targets investments in hypersonic systems, biotechnology, and artificial intelligence, also referred to as "superintelligence" by the Treasury. Experts believe this move signals increased scrutiny of where U.S. capital is invested and its role in developing advanced capabilities. The rule will apply to investments exceeding $50,000 and will exclude most financial investments like stock purchases. Treasury will consider public comments before finalizing the rule, which is seen as a step towards stronger enforcement of outbound investment controls. China has criticized the U.S. proposal, urging adherence to free market principles and warning against trade interference. This action is part of a broader economic and tech rivalry between the U.S. and China, with both nations having previously imposed restrictions on technology exports and tariffs. Despite past agreements to ease tensions, the competition continues, as demonstrated by a recent fine against a U.S. company for failing to report an investment in a Chinese AI firm.