According to a report by Reuters on October 7, the U.S. Treasury announced on Wednesday that the first penalty under its regulations targeting investments in sensitive technology fields in China was imposed on the parent company of Plug and Play Tech Centre. A fine of $200,000 was imposed because the company failed to declare its investment in a Chinese robotics AI company.
The U.S. Treasury Department stated on Wednesday that Amidi, LLC's Chinese subsidiary failed to submit the necessary declarations as required after investing approximately $92,478 in a Chinese company on April 19, 2025.
This fine was imposed in July this year, but it wasn’t announced until Wednesday. The amount of the fine exceeded twice the amount invested.
This is the first specific case where the US took law enforcement action under the "Outward Investment Security Programme" (Outbound Investment Security Programme). The programme came into effect on January 2025 and regulates the investments of US companies in China's AI, semiconductor, and quantum computing industries.
The plan prohibits certain transactions and requires investors to report other transactions to the U.S. Treasury. Its provisions also cover certain investments conducted by overseas entities controlled by Americans.
The US Treasury determined that Amedi’s violation lies in its failure to report this transaction to the Treasury. The announcement did not classify this investment as a prohibited transaction, nor did it accuse any Chinese companies of misconduct.
U.S. Treasury Secretary Scott Bessent said that this announcement highlights the determination of the U.S. Treasury to protect national security through investment in security measures.
The Chinese Ministry of Commerce has pointed out that the US practices generalize the concept of national security, which is discriminatory. These practices are typical non-market actions that seriously affect the normal economic and trade cooperation between the two countries' enterprises.
The Chinese side urges the US to comply with international investment and trade rules, respect the laws of a market economy, and stop politicizing and militarizing economic and trade issues. The Chinese side will closely monitor the US's actions and take necessary measures to defend its legitimate rights and interests.
