The U.S. House of Representatives recently passed the Biosecure Act with a significant majority vote of 306 to 81. This legislation imposes penalties on U.S. pharmaceutical companies that receive federal funding if they continue to collaborate with five Chinese drug service firms—WuXi AppTec, WuXi Biologics, BGI Group, MGI, and Complete Genomics—citing national security concerns. A Senate version of the bill is expected to pass soon, paving the way for the Act to become law.
According to the legislation, affected U.S. pharmaceutical companies have until 2032 to completely decouple from their Chinese suppliers. This move signals a substantial shift in the global pharmaceutical supply chain, given China’s comparative advantage in producing medical compounds—the essential ingredients used in drug manufacturing.
This development is part of a broader series of legislative efforts by the U.S. Congress aimed at reducing reliance on China across various sectors. Upcoming bills reportedly target areas ranging from alleged political influence to industries like drones and batteries. The intensifying focus on decoupling raises questions about the implications for global trade and the pharmaceutical industry.
While diversification of supply chains is a strategic objective for many nations, the scope of the Biosecure Act has prompted debate. Critics argue that extending restrictions to a wide array of drugs and excluding Chinese companies goes beyond diversification and could disrupt the availability of essential medicines. The Act underscores concerns about over-reliance on China, especially amid political tensions, but its broad reach may have unintended consequences for both U.S. businesses and global health markets.
Reference(s):
cgtn.com
