US to restrict investments in Chinese biotech firms

The U.S. Department of the Treasury has proposed to add biotechnology to its list of sensitive technologies on national security grounds, a move to restrict investment in the sector in rival countries, such as China.

The restriction could further complicate financial relations between the US and China at a time when US drugmakers are increasingly looking to China for new medicines.

The proposed rules would require US investors to notify the government of certain transactions involving foreign companies developing sensitive technologies, while others would be prohibited outright. The proposed 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.

In fact, 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.

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.
 

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