US issues first outbound investment fine over Chinese robotics AI deal

The US Treasury on Wednesday announced its first penalty under rules governing American investment in sensitive Chinese technologies, revealing a US$200,000 fine against the parent of Plug and Play Tech Centre for failing to report an investment in a Shanghai robotics AI company.

The Treasury said on Wednesday that Amidi, LLC failed to submit a required notification after its Chinese fund subsidiary invested around US$92,478 in Shanghai Qiongche Intelligent Technology Company Limited, known as Noematrix, on April 19, 2025.

The penalty was issued in July but announced on Wednesday. It exceeded twice the investment amount.

The case provides the first concrete example of enforcement under the Outbound Investment Security Programme, which took effect in January 2025 and governs certain US investments in Chinese artificial intelligence, semiconductor and quantum computing businesses.

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The programme prohibits some transactions and requires investors to notify the Treasury of others. Its requirements also cover certain investments made through overseas entities controlled by US persons.

The Treasury identified Amidi’s violation as a failure to notify it of the transaction. The announcement did not describe the investment as prohibited or allege wrongdoing by Noematrix.

The South China Morning Post contacted Amidi and Noematrix for comment.

Amidi is the parent entity of the organisation operating as Plug and Play Tech Centre, the Treasury said.

Noematrix develops “embodied AI”: models and software that enable robots to understand their surroundings and perform physical tasks. The company lists logistics, household services and food processing among its applications.

Its financing announcements have named Plug and Play China among its investors, alongside Prosperity7 Ventures, a fund under Aramco Ventures, and other investment firms.

US Treasury Secretary Scott Bessent said the announcement underscored the department’s commitment to protecting US national security through investment security measures.

Christopher Pilkerton, assistant secretary for investment security, said the programme addressed advances in key technologies by countries of concern that could pose national security risks.

“We will continue to ensure that investors comply with the requirements established under the programme,” he said.

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The Treasury said it discovered the transaction through regular compliance and market monitoring. The announcement did not explain how it calculated the US$200,000 penalty.