America is facing a challenge in the biotech industry, impacting both Chinese and American drugmakers. The rising costs of healthcare in the US are a concern, especially with the increasing demand for treatments due to an aging population. On the other hand, Chinese biotechnology is becoming more advanced and cost-effective, posing a competitive threat to American companies. Many US drugmakers, ranging from startups to major pharmaceutical companies, are turning to Chinese firms like WuXi AppTec and WuXi Biologics for drug research and manufacturing services. Additionally, MGI Tech is offering American hospitals gene-sequencing machines that are not only cheaper to purchase but also more cost-effective to operate compared to American-made alternatives. This partnership seems promising, but it has raised concerns in America’s Congress.
A bill is currently under consideration in the Senate that would prevent the federal government from procuring healthcare products from companies associated with WuXi and MGI Tech. Lawmakers in the House of Representatives are also advocating for the BIOSECURE Act, which aims to address similar issues. The primary worries revolve around the security of American health data, the protection of intellectual property, and the potential funding of Chinese entities linked to the PLA and human rights violations. If these measures are implemented, American patients may face the consequences.
Despite their disagreements on various issues, both Democrats and Republicans share a common distrust of China. Recent legislative developments indicate bipartisan support for restricting ties with Chinese biotech companies. This has led to speculation among investors about the potential impact on companies like WuXi AppTec, whose stock price has been affected by these uncertainties.
2024-04-15 14:31:41
Originally posted on www.economist.com