U.S. Treasury Issues First Fine Over Outbound Investments in China’s Tech Sector

The U.S. Treasury Department said on Wednesday it had fined the parent company of startup accelerator Plug and Play Tech Center, the first penalty issued under an outbound investment restriction program targeting China’s tech sector.

California real estate company Amidi Group was fined $200,000 for failing to notify Treasury of a Chinese subsidiary’s investment into Noematrix, a Shanghai-based robotics startup. The Outbound Investment Security Program, which took effect in January 2025, forbids Americans from investing in certain tech sectors in China and requires notification of investments in others.

In April, a Chinese fund controlled by Amidi invested $92,478 in Noematrix. The Treasury didn’t explain the basis for the calculations of the fine, which more than doubled the value of the investment. The department said the fine was issued in July, and didn’t require the investment to be unwound.