Executive Summary
The U.S. has enacted the Comprehensive Outbound Investment National Security Act of 2025, codifying and expanding the Treasury's Outbound Investment Security (OIS) Program. This legislation regulates and restricts U.S. outbound investments in sensitive technologies to countries of concern, aiming to prevent contributions to foreign adversaries' military modernization and national security threats. The act expands coverage to include more countries and critical sectors like high-performance computing and hypersonic systems.
Why It Matters
This document details the U.S. government's new legislative and executive actions to restrict outbound investments in critical technologies to China and other adversarial nations, directly impacting strategic competition and national security. It is crucial for understanding the evolving economic warfare and technology control landscape.
Key Takeaways
- The U.S. has enacted the Comprehensive Outbound Investment National Security Act of 2025, expanding the scope of the Outbound Investment Security (OIS) Program.
Source evidence · PDF page 1
Congress enacted the Comprehensive Outbound Investment National Security Act of 2025 (“the act”) as part of the National Defense Authorization Act for FY2026 (Title LXXXV of P.L. 119-60).
- The OIS Program, initiated by Executive Order 14105, targets investments in sensitive technologies that could advance military, intelligence, surveillance, or cyber capabilities of countries of concern.
Source evidence · PDF page 1
EO 14105, issued by President Biden, reiterates an “open investment” posture that promotes cross-border investment, “where not inconsistent with the protection of [U.S.] national security interests.” It asserts that “advancement by countries of concern in sensitive technologies and products critical for ... military, intelligence, surveillance, or cyber-enabled capabilities” constitutes an “unusual and extraordinary threat” to U.S. national security.
- The new act expands the list of covered countries to include Cuba, Iran, North Korea, Russia, and Venezuela, and adds sectors like high-performance computing and hypersonic systems to the restrictions.
Source evidence · PDF page 2
The act expands the countries covered by the OIS Program from China to also include Cuba, Iran, North Korea, Russia, and Venezuela. It expands covered sectors to include high-performance computing, supercomputing, and hypersonic systems.
Strategic Relevance
The regulation of outbound U.S. investment in critical technologies to strategic competitors like China is a key component of economic statecraft and national security strategy. It aims to deny adversaries access to capital and know-how that could enhance their military and intelligence capabilities, thereby shaping the global balance of power and technological advantage.