US proposes investment restrictions on Chinese biotech firms
The US Treasury has proposed adding biotechnology to its list of sensitive technologies, restricting American investment in Chinese biotech and brain-computer interface firms. The move, citing national security, could complicate US-China financial ties as US drugmakers increasingly rely on Chinese i
The U.S. Department of the Treasury has proposed adding biotechnology to its list of sensitive technologies on national security grounds, a move that would restrict American investment in the sector in rival countries, including China.
The proposed rules would require US investors to notify the government of certain transactions involving foreign companies developing sensitive technologies. Other transactions would be prohibited outright. The regulations would also restrict investment in Chinese brain-computer interface companies.
The US government has already imposed related investment restrictions in areas such as artificial intelligence, semiconductors and quantum computing. The new proposal could further complicate financial relations between the US and China at a time when US drugmakers are increasingly looking to China for new medicines.
Chinese biotechnology companies have become a source of innovation for the pharmaceutical industry. US drugmakers are increasingly turning to China to license promising therapies to replenish their pipelines, according to the report.
The U.S. Department of the Treasury is seeking public comment on the final rules, and the restrictions will not take effect until the process is complete.
