Will Chinese Pharmaceutical Biotech Influence Grow... US Issues "Warning, Must Invest for 5 Years"

Senate Committee: "If the U.S. Fails to Respond, China Could Overtake in Three Years"

As the United States and China exchanged tariff bombs, intensifying trade conflicts, the U.S. Congress has issued a warning regarding Chinese biotech.

On the 8th, Yonhap News cited U.S. media including The Wall Street Journal (WSJ) to report on a report released that day by the U.S. Senate's National Security Commission on Emerging Biotechnology (NSCEB).

(This photo is not directly related to the article.) Pixabay

The report included that China has prioritized biotechnology as a strategic focus for 20 years and is rapidly gaining an advantage in this field. It warned that if the U.S. does not respond quickly and actively over the next three years, it could be overtaken by China in the biotech sector and suffer irreparable damage.

It also recommended banning cooperation with Chinese companies in this sector that could pose a national security threat. Furthermore, it stated that the U.S. should invest at least $15 billion (approximately 22 trillion won) in biotech over the next five years. Given China's massive investments in biotech, it emphasized the need to closely cooperate with traditional partners such as allies to counterbalance China.

The NSCEB is a bipartisan legislative commission established by Congress under the 2022 National Defense Authorization Act. It studies and reviews the impact of biotechnology on national security.

(This photo is not directly related to the article.) Shinhwa Yonhap News

Previously, the U.S. has strongly guarded against China's rapidly growing biotechnology and pharmaceutical sectors. With China's R&D competitiveness growing sharply, there are forecasts that the gap between China and the global pharmaceutical and biotech industries will widen.

According to the Life Sciences Competitiveness Indices (LSCIs) recently released by the United Kingdom, the U.S. share of medical paper citations declined from 43.6% in 2011 to 31.6% last year, while China showed a sharp rise from 6.2% to 24%.

The '2025 Global R&D Trends - Part 1' report by IQVIA, a pharmaceutical market research firm, also revealed that over 70 international M&A or technology transfer agreements involving China-based companies were signed last year. Most were technology exports to U.S. or European companies.

Of the total 73 deals, 71 (92%) were 'outbound' transactions where overseas companies from the U.S., Europe, etc., acquired technology from Chinese companies. This trend has increased over the past five years. Major pharmaceutical companies such as AstraZeneca, GlaxoSmithKline (GSK), and Johnson & Johnson have shown interest by importing or purchasing rights to drugs developed and clinically tested in China.

Conversely, 'inbound' transactions where Chinese companies acquire technology from overseas firms were rare. About 40% (29 deals) of China-related transactions focused on the oncology field.

Meanwhile, this is not the first time the U.S. Congress has issued a warning about Chinese biotech. In September last year, the U.S. House of Representatives passed the Biosecure Act, which classified Chinese biotech companies as security threats and imposed sanctions, but the bill was rejected in the Senate.

This content was produced with the assistance of AI translation services.