A top House Republican, John Moolenaar, has called on the Treasury Department to prevent American investments in Chinese biotechnology companies. Moolenaar, chairman of the House Select Committee on the Chinese Communist Party, emphasized that US capital and expertise are aiding China in dominating the global pharmaceutical sector. He urged Treasury Secretary Scott Bessent to classify biotechnology as a “prohibited technology” under the COINS Act of 2025.
Moolenaar highlighted the intense biotechnology competition between the US and China, stressing its critical implications for national security, economic security, healthcare, and American medical data privacy. He pointed out that China is strategically aiming to lead in pharmaceutical development, biologics manufacturing, and clinical research capabilities. The congressman expressed concerns that US investments, licensing agreements, and intellectual property transfers are fueling China’s biotech ambitions and elevating Chinese firms in the global pharmaceutical value chain.
Citing data, Moolenaar mentioned that cross-border out-licensing transactions between multinational pharmaceutical companies and Chinese biotech firms reached around $136 billion in 2025. He noted that a significant percentage of global pharmaceutical licensing deals exceeding $50 million now involve Chinese companies, a stark contrast from previous years. Moolenaar specifically called out recent partnerships between major American drugmakers like Eli Lilly and Bristol Myers Squibb with Chinese counterparts.
Moolenaar also raised alarms about China’s clinical trial system, labeling it as the world’s most cost-effective and rapid system but raising ethical concerns regarding informed consent and involuntary participation. He expressed worries about clinical trials conducted in Xinjiang hospitals and Chinese military facilities, potentially exposing sensitive American biotechnology data and intellectual property to the Chinese military. Moolenaar cautioned that failure to restrict outbound biotech investments could lead to strategic US dependence on China, akin to vulnerabilities in rare earth minerals and semiconductor supply chains.
