Bipartisan lawmakers in the US House of Representatives have introduced the Biotech Investment National Security Act (BINSA) to subject American investments and technology transfers in China’s biotechnology sector to national security scrutiny. This move reflects concerns over Beijing’s increasing role in global pharmaceutical research and manufacturing. The legislation aims to review US investments, licensing agreements, and joint ventures involving Chinese biotechnology firms under the Comprehensive Outbound Investment National Security (COINS) Act.
Proponents of the bill argue that American pharmaceutical companies are transferring valuable intellectual property, research capabilities, and manufacturing expertise to China. They warn that this trend could lead to long-term strategic dependencies. Rep. John Moolenaar, chairman of the House Select Committee on China, emphasized the need to protect American research, innovation, and pharmaceutical production. He highlighted deals between American companies like Pfizer and Bristol Myers Squibb with Chinese biotech firms as potential threats to the nation’s future.
The proposed legislation, introduced by Rep. Moolenaar and Rep. Debbie Dingell, aims to safeguard American interests in biotechnology. Dingell stressed the importance of the US maintaining leadership in innovation and avoiding dependency on foreign competitors like China for critical pharmaceutical ingredients and medical supply chains. The bill would require the Treasury Department to review pharmaceutical licensing agreements, joint ventures, and equity investments involving Chinese entities, with a focus on technology transfers and intellectual property.
Lawmakers supporting the bill argue that biotechnology has strategic implications beyond healthcare, extending into economic competitiveness and national security. The legislation identifies various areas, including pharmaceutical products, biological products, drug-discovery platforms, and biologics manufacturing, that could be subject to outbound investment screening. The bill excludes agricultural biotechnology, unrelated industrial fermentation, and basic academic research, while emphasizing the need to reduce reliance on China in critical sectors.
