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The United States government has proposed sweeping new regulations to restrict American venture capital and private equity investments in Chinese biotechnology and genomics firms. The proposed rules specifically target sectors involving genetic sequencing, pharmaceutical research, and biotech platforms deemed critical to long-term national and economic security. Officials cite concerns that U.S. funding and expertise could unintentionally advance foreign military capabilities or consolidate control over critical global health data supply chains. The measure builds upon prior restrictions targeting advanced semiconductors and artificial intelligence, marking a broader government push to decouple sensitive life science industries. Industry groups and investors are reviewing the compliance implications as the regulatory proposal enters its formal public comment and review phase.