Biosecure Act’s Finale
The Biosecure Act is approaching its final stages in the U.S. Congress as lawmakers race to complete legislation before the 119th Congress begins in January 2025. The bill, initially proposed in January 2023 by the House Select Committee on China (CCP), aims to prohibit U.S. companies from doing business with certain Chinese biotech firms if those firms are connected to the federal government. It passed the House of Representatives earlier in the year and gained momentum, particularly due to growing bipartisan concerns over China’s influence in the global manufacturing and biotech sectors.
The act stems from fears that post-pandemic supply chain disruptions and China’s expanding power could undermine U.S. interests, particularly in high-tech industries like biotechnology. Much like the CHIPS Act focused on semiconductor production, the Biosecure Act could have significant consequences for China’s Contract Development and Manufacturing Organization (CDMO) sector, prompting U.S. companies to look toward Asia-Pacific regions like Japan, South Korea, and Singapore for alternative partnerships. This would diversify the supply chain and lessen dependence on Chinese entities.
However, the Senate version of the bill, which passed the Committee on Homeland Security and Government Affairs with an 11-1 vote, is still under consideration. Its fate depends on whether the Senate will take up the bill in the remaining days of the current session, with the upcoming shift to a Republican-majority Congress in January creating more uncertainty. The Biosecure Act has garnered support due to concerns over China’s growing power, but Senator Rand Paul (R-KY), the ranking member of the Senate Committee, voted against it, fearing that the bill unfairly targets Chinese companies and might be a backdoor attempt to protect U.S. biotech interests from international competition.
This presents a challenge for the Republic-controlled Senate to move forward with the bill’s passage, especially with concerns that it could stoke tensions between the U.S. and China. There’s uncertainty around how a second term under President Trump, with Elon Musk’s influence, might shape the relationship between Washington and Beijing, particularly in the context of biotech and other emerging technologies.
As the bill’s fate is uncertain, it will be interesting to see if China's biotech sector is significantly impacted and whether companies like WuXi AppTec, which are closely tied to both U.S. and Chinese markets, remain undeterred by such regulatory pressures. The Biosecure Act could have a long-term impact on international biotech collaborations, prompting companies to reassess their global strategies amidst shifting geopolitical dynamics.