JPM2025 and Senate Hearings: the China Story

(this article has been updated to make the text concise and cohesive)

At JPM2025, there’s growing excitement, but also some nerves, surrounding the increasing number of innovative assets being licensed from Chinese or China-originated biotech companies.

2024 has proven to be a particularly strong year for China’s biotech sector. With new companies, out-licensing deals, and mergers and acquisitions gaining momentum, China seems to have firmly arrived on the global biotech scene.

According to market research firm Stifel’s year-end report, more than one-third of the new molecules purchased by pharmaceutical companies in 2024 came from China—a dramatic shift from just four years ago, when that number was zero. In total, China’s outbound deals generated over $8 billion in upfront cash payments, translating to 80 licensing agreements, each valued at $100 million or more.

That’s about one deal every three days—a significant milestone for China’s biotech industry.

Reflecting on China’s rise, I’m reminded of Deng Xiaoping’s famous advice: “Conceal one’s strengths and bide one’s time.” After years of groundwork, China, once primarily a recipient of foreign innovation, is now distributing cutting-edge drug assets to the world.

Back in 2021, I recall the explosion of biotech startups in China. Many returnees who had climbed the corporate ladder at multinational companies seemed to heed an unspoken call, leaving their high-paying jobs to start their own bioventures. The excitement around original innovation spread quickly, much like a contagion. One founder of a contract research organization joked that there seemed to be a new biotech opening in Shanghai every single day during the peak of 2020-2021.

The trend of out-licensing, which started gaining traction in 2024, shows no signs of slowing down and is expected to continue into 2025 and beyond.

While it may seem like China’s biotech innovation has exploded overnight, it’s been built on years of hard work and solid foundations, driven by tens of thousands of talented professionals and multiple stages of development.

Five thousand miles away in Washington D.C., while JPM2025 was in full swing, U.S. Capitol Hill hosted several Senate hearings on January 15. One of the most notable was the confirmation hearing for Secretary of State nominee Marco Rubio. During this session, Kentucky Senator Rand Paul asked Rubio whether there were ways to engage with China rather than continually attacking Beijing.

As the new Trump administration approaches, questions loom: Will it seek ways to work with China, or will it push further for decoupling? Will there be more restrictions on U.S. investment in China, or a move toward greater collaboration? Stay tuned.