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The U.S. has implemented new investment restrictions targeting Chinese tech firms as part of the Comprehensive Outbound Investment National Security Act of 2025, signed by President Trump on December 18. This legislation, included in the National Defense Authorization Act for fiscal year 2026, aims to prevent U.S. funds from supporting high-tech sectors in nations considered security risks, such as China and Russia, while also enhancing oversight of biotechnology firms and restricting the Department of Defense's procurement of sensitive materials from these countries.