Xinhua Commentary: Proposed U.S. Investment Curbs on China Could Harm American Businesses
Dragon Media News Desk
A proposed U.S. Treasury rule to tighten restrictions on American investment in China could end up costing U.S. businesses, Xinhua has said in a commentary. It argued that the proposal politicises ordinary business activity, weakens market principles and adds uncertainty to China–U.S. economic relations.
On October 22, the U.S. Treasury issued a proposal to update rules governing certain U.S. investments abroad. It would add biotechnology to the sectors covered by restrictions on investment related to China and expand controls involving high-performance computing and hypersonic technologies. The proposal is open for public comment and has not yet taken effect.
The commentary said biotechnology offers significant potential for mutual benefit. Citing China’s Ministry of Industry and Information Technology, it reported that the value of overseas licensing deals for Chinese innovative medicines exceeded $13 billion in 2025. Xinhua also noted that U.S. pharmaceutical companies have signed multibillion-dollar agreements with Chinese biotechnology firms, arguing that tighter restrictions could disrupt such partnerships and weaken the competitiveness of U.S. companies.
Developing medicines, advancing cancer treatment and creating vaccines against infectious diseases require international research, data sharing and scientific cooperation, the commentary said. It argued that treating biotechnology as a national-security issue and restricting investment could hinder medical innovation.
The U.S. Treasury says the proposal is intended to regulate certain investments involving technologies connected to national security. The department has said it will issue a final rule after reviewing public comments; the effective date will be set then.
Xinhua said economic ties between China and the United States should be based on mutual benefit and cooperation. It urged Washington to listen to its business community and adopt what it described as a more rational, market-oriented approach. The commentary added that China would monitor developments and reserved the right to take corresponding measures.
