Treasury proposal could reshape US-China biotech investment
The US Treasury issued a proposed rule to implement the COINS Act, a 2025 law governing American investment in sensitive technologies in China and other countries. The proposal unexpectedly took a broad approach, raising questions about whether it could curtail biotech transactions with China.
Treasury has issued a proposed rule to carry out the COINS Act, a 2025 law that governs American investment in sensitive technologies in China and other countries. According to the summary, the proposal took an unexpectedly wide approach. That has raised questions about whether it could limit biotech transactions with China. The focus is on how an investment measure covering sensitive technologies might extend into biotech dealmaking.
The proposal could affect investors, biotech companies, and research partners who rely on cross-border financing and collaboration. If the rule is read broadly, some transactions may face added scrutiny or delay, which could slow early-stage drug development or alter partnership choices. Patients may feel such effects indirectly if projects are postponed or redirected. The scale of impact remains uncertain because the proposal is not final and its treatment of biotech is still a question raised by the summary.