US Treasury proposes rule that could bar biotech investments in China

The Treasury Department issued a proposed rule to implement the 2025 COINS Act, which governs U.S. investment in sensitive technologies in China and other countries.

The proposal places a broad range of drug‑related technologies on a prohibited investment list, potentially barring U.S. capital from many biotech collaborations with Chinese firms.

China‑based biotech deals have driven a wave of M&A activity over the past two years, and the rule has sparked debate between those who favor open exchange of drugs and ideas and those who argue such transactions should be blocked. Industry observers say the rule could significantly curtail cross‑border biotech financing.