The U.S. House of Representatives has passed a bill aimed at restricting business with several Chinese biotech companies, including WuXi AppTec and BGI, citing national security concerns. Other companies named are China’s MGI and its California-based subsidiary Complete Genomics.
The Biosecure Act, which passed with a significant majority of 306 to 81 votes, will prohibit federal contracts with these targeted firms and any companies doing business with them.
Proponents of the bill, including Representatives John Moolenaar and Raja Krishnamoorthi from the House Select Committee on China, argue that it is necessary to protect Americans’ personal health and genetic information, as well as safeguard U.S. pharmaceutical supply chains. The legislation now moves to the Senate for consideration before potentially reaching President Biden’s desk for signing into law.
The news has had immediate financial repercussions, with Hong Kong-listed shares of WuXi AppTec and WuXi Biologics experiencing significant drops of up to 11% and 9% respectively on Tuesday.
This legislative action represents another point of tension in the ongoing complex relationship between the United States and China, particularly in the realms of technology, biotechnology, and national security. It underscores the challenges faced by Chinese companies operating in the U.S. market amidst increasing scrutiny and regulatory pressures.
