Wuxi AppTec hits back at 'misleading sanctions' push

China’s biotech firm WuXi AppTec (2359) strongly opposed “misleading allegations” in response to a call by US lawmakers for sanctions to be levied on it.

The firm, located in Jiangsu province, also said it has “always welcomed regulatory oversight” and had “successfully completed US government reviews in the past,” according to a statement released yesterday.

Stressing that it wasn’t involved in the business of human genomics, Wuxi AppTec strongly objected to misleading allegations, inaccurate assertions and preemptive actions against it without “due process.”

It emphasized that it had never posed a security risk to the United States and believed another US review would “reach the same conclusion.”

The rebuttal came after a bipartisan group of lawmakers told top Biden administration officials that Washington should review WuXi AppTec and its affiliate WuXi Biologics (2269) with an eye for imposing sanctions on them.

In a letter dated February 12, they told Treasury Secretary Janet Yellen, defense chief Lloyd Austin and commerce boss Gina Raimondo that the global pharmaceutical giant’s links to China’s Communist Party and military threatened national security.

The letter – signed by the Republican chairman and Democratic ranking member of the House select committee on China, Mike Gallagher and Raja Krishnamoorthi, and senators Gary Peters and Bill Hagerty – is Congress’ latest effort to highlight what it says are risks posed by China’s biotech leaders.

Congress has introduced legislation that would restrict federally-funded medical providers from allowing China’s BGI Group, WuXi AppTec and other biotech firms from getting genetic information about Americans.

The lawmakers – citing public Chinese government documents, university websites and media articles – outlined what they called WuXi AppTec’s clear military ties, as well as support for policies in Xinjiang, a region where Washington has accused Beijing of committing genocide against Muslim minorities.

They said WuXi AppTec had received investment from numerous PLA funds, including the AVIC Military-Civil Integration Selected Hybrid Securities Investment Fund.