Chinese biotechs face tighter regulatory scrutiny in US market

The U.S.

House of Representatives has unanimously passed a bipartisan bill aimed at preventing American taxpayer dollars from being used to support Chinese biotechnology companies that pose a national security threat.

Pharmaceutical and health care corporations in the United States now have until 2032 to sever ties with these Chinese entities, according to the legislation.

The BIOSECURE Act, as the bill is known, would prohibit federal loans or grants from being used to procure, obtain, or utilize any biotechnology equipment or services provided by the concerning Chinese companies identified by the legislation.

Furthermore, it establishes an interagency process for identifying additional companies that should face a similar ban.

Representative Raja Krishnamoorthi (D-IL), Chairman of the House Select Committee on Strategic Competition between the United States and the Chinese Community Party (CCP), highlighted the role of BGI and WuXi in the perpetration of human rights abuses, specifically the Uyghur genocide.

He stated that both companies have been found by the U.S.

government to operate 27 pregnancy genetic testing centers with China’s People’s Liberation Army (PLA), enabling the CCP to identify and separate Uyghurs from other residents—a critical component of the CCP’s genocidal efforts.

The BIOSECURE Act also addresses concerns about the transfer of intellectual property between American companies and Chinese entities such as WuXi Apptec.

The Washington-based advocacy group Campaign For Uyghurs, which has been a vocal supporter of this legislation, called it “crucial legislation” and expressed pride in having advocated for its success on Twitter (formerly known as X.

The letter from the Department of Energy cited by Mr.

Krishnamoorthi notes that WuXi AppTec and WuXi Biologics have concealed their ties to the CCP and PLA, enabling them to rapidly integrate themselves into U.S.

supply chains through agreements with prominent American biotech companies like the Lawrence Livermore National Laboratory.

Representative Krishnamoorthi emphasized that these Chinese entities should not be receiving funds from U.S.

taxpayers for these reasons and others.

He expressed a desire to work with colleagues across the aisle and in the Senate to protect Americans’ health and their data.

The passage of the BIOSECURE Act marks a significant step towards safeguarding national security while ensuring that American taxpayer dollars are not used to support companies complicit in human rights abuses.

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