The Chinese government has publicly called on the United States to withdraw a recently proposed rule that would tighten restrictions on American capital flowing into China’s technology industry. The request follows a Thursday announcement from the U.S. Treasury Department, which outlined plans to expand the scope of the Outbound Investment Security Program (OISP).

The proposed U.S. regulations are designed to limit American involvement in the development of sensitive technologies, specifically citing concerns over hypersonic systems and quantum computing. These sectors are viewed by U.S. policymakers as critical to national security and future military capabilities. By restricting the flow of private investment and expertise into these Chinese industries, the U.S. government aims to prevent its own capital from fueling technological advancements that could be used by the Chinese military.

In response, Chinese officials characterized the proposed restrictions as a harmful interference in international trade. They argued that such measures would disrupt established trade relations and create unnecessary barriers between the two global economies. While the U.S. frames the move as a necessary step to protect national security, Beijing maintains that the policy is an overreach that unfairly targets its domestic tech sector. The Treasury Department has not yet issued a formal response to China's request to reconsider the proposal, and the rule-making process remains ongoing as officials review the potential economic impacts of the expanded restrictions.