New Delhi, Oct. 25 -- China's Ministry of Commerce urged Washington on October 24 to abandon a proposed expansion of restrictions on American investment in sensitive technologies, warning of harm to commercial ties and reserving the right to respond. Beijing did not identify any countermeasures it would take.

The dispute follows the US Treasury Department's October 22 proposed update to its Outbound Investment Security Program. The draft adds biotechnology and expands coverage of high-performance computing and hypersonic systems, alongside existing controls involving semiconductors, quantum technologies and artificial intelligence.

Reuters reported that the ministry described the expansion as discriminatory and said it ran against under...