Daily Newsletter

10 September 2024

Daily Newsletter

10 September 2024

US bill passed to restrict business with Chinese biotech companies

The bill was passed by US House of Representatives and now awaits approval by the US Senate and the President.

Vishnu Priyan September 10 2024

The US House of Representatives has passed a bill aiming to restrict business with certain Chinese biotech companies, citing national security concerns, Reuters has reported.

Known as the Biosecure Act, the bill seeks to limit federal contracts with specific Chinese biotech firms and those engaging in business with them.

In a transcript published on Congress.gov, a website providing US federal legislative information, the “biotechnology companies of concern” were named as BGI, MGI, Complete Genomics, WuXi AppTec and WuXi Biologics.

The legislation is part of a broader effort to protect American health data and pharmaceutical supply chains from potential foreign threats.

The bill was passed with a significant majority: 306 votes in favour and 81 against. This surpasses the two-thirds majority required.

It now awaits approval by the US Senate and US President Joe Biden's signature to become law.

During the House floor debate, Representatives John Moolenaar and Raja Krishnamoorthi, chair and ranking member of the House Select Committee on China, respectively, supported the bill, highlighting the need for safeguarding sensitive information.

Representative Jim McGovern, however, expressed concerns about the transparency of the process used to identify the companies listed in the bill.

WuXi Biologics, which is constructing a facility in the Massachusetts district, is among the firms mentioned.

The Chinese foreign ministry criticised the bill as "discriminatory" and urged the US to cease using national security as a pretext to suppress Chinese businesses.

Ministry spokesperson Mao Ning said in a news conference: “China will continue to firmly safeguard the legitimate rights and interests of its companies.”

WuXi AppTec expressed disappointment in the House's decision, stating that the company was "pre-emptively and unjustifiably designated without due process."

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