The U.S. Treasury Department last week released a draft of outbound investment restrictions targeting Chinese biotechnology companies, aiming to prevent U.S. investment from flowing into these firms to protect U.S. national security. Treasury Secretary Scott Bessent stated that this move is intended to prevent adversaries from leveraging U.S. investment to develop critical technologies that threaten U.S. national security. These restrictions primarily target equity acquisitions and joint ventures, potentially making it more difficult for Chinese biotech companies to attract U.S. direct investment or establish joint ventures. Meanwhile, China has also proposed new biotechnology export control measures, prohibiting the export of certain cell and gene therapy platforms, as well as small interfering RNA technology platforms. Analysts believe that while the new regulations do not affect conventional drug licensing deals, the measures from both countries will prompt companies to restructure cross-border transactions to avoid direct equity investments.