Facings the rise of China's biotechnology, the US Congress will pass the Biosecurity Act to restrict biotech exchanges with China. China strongly objects and firmly opposes it.

After nearly two years of legislative struggles and through the US election and presidential transition, the Biosecurity Act has been formally included in the 2026 fiscal year National Defense Authorization Act (NDAA), getting one step closer to becoming law, requiring only the President's signature.

This Wednesday, the US Senate passed a defense bill totaling approximately $90.1 billion, which was sent to the President for signing. As part of the defense bill, the revised Biosecurity Act continues to restrict federal government exchanges with specific Chinese biotech companies under the name of national security, but the scope and implementation mechanisms have been adjusted compared to the previous version. The core provision of the law states that the executive branch may not procure equipment or services from companies designated as "biotechnology concern entities," and after specific circumstances and implementation periods, it prohibits federal contracts involving the use of such equipment or services.

The new version of the bill no longer directly names Chinese companies, but instead authorizes the Office of Management and Budget (OMB) to establish an inter-agency mechanism to publish and update the list of "biotechnology concern entities." It also references the list of entities related to China under the Pentagon's 1260H provision. The restrictions under the Biosecurity Act also apply to any entity listed under the 1260H provision.

Additionally, according to the bill, the procurement restrictions by the Department of Defense will be extended to solar panels, inverters, and some critical minerals. The Pentagon must gradually phase out Chinese-made computers and printers and assess the Chinese data and network equipment manufacturer TP-Link.

The Chinese embassy in the United States criticized the bill as "fanning the 'China threat' theory and abusing state power to suppress China's economic development" and emphasized that "China is strongly dissatisfied and firmly opposes it."

The Biosecurity Act was first introduced in December 2023. Due to criticism from some legislators, the bill was excluded from the 2025 package plan. After revision, the framework returned to Congress. Although the final version adopted a more relaxed framework, the pharmaceutical industry remains vigilant about the potential impact of the bill.

According to data from the magazine "Pharmaceutical Technology," Chinese companies currently account for about 20% of the global research and development drugs, reflecting the country's significant influence in the pharmaceutical industry.

According to an analysis by GlobalData, the parent company of the magazine, licensing transactions between US and Chinese biopharmaceutical companies reached a record high last year, increasing by 280% compared to 2020.

Source: rfi

Original: toutiao.com/article/1851912204369932/

Statement: This article represents the views of the author."