Bipartisan Bill to Curb Investment in China’s Biotech Sector

U.S. House lawmakers have unveiled bipartisan legislation aimed at expanding federal scrutiny of U.S. investments in China's biotechnology sector, arguing that American capital and expertise are accelerating the growth of a strategic industry that could undermine U.S. economic and national security interests.

Reps. John Moolenaar (R-MI), chairman of the House Select Committee on China, and Debbie Dingell (D-MI) have introduced the Biotech Investment National Security Act (BINSA), which would bring biotechnology-related investments under the review framework established by the Comprehensive Outbound Investment National Security (COINS) Act.

The bill would add pharmaceutical and biological product development to the list of sectors subject to outbound investment screening and require Treasury Department review of certain U.S. pharmaceutical licensing agreements, joint ventures and equity investments involving Chinese entities. The legislation also explicitly covers licensing deals involving technology transfers and intellectual property.

"This legislation will protect research, innovation, and the medicines Americans depend on," Moolenaar said in a statement. He argued that agreements between U.S. drugmakers and Chinese biotechnology companies risk transferring American expertise and technology overseas while strengthening China's position in pharmaceutical manufacturing and research.

Dingell said the measure is intended to prevent U.S. investment from supporting biotechnology industries that could threaten American economic and national security interests.

"The United States must remain the global leader in innovation, and we cannot afford to be dependent on foreign competitors – like the People's Republic of China – for critical pharmaceutical ingredients, drug development, and medical supply chains," Dingell said.

Under the proposal, the Treasury Department would be required to issue implementing regulations within one year, in consultation with the Department of Health and Human Services, Department of Defense and the Director of National Intelligence. The bill would also direct the Secretary of Defense to assess within 60 days whether U.S. capital flows into China's biotechnology sector negatively affect national security and military readiness.

The legislation excludes agricultural biotechnology, industrial fermentation and basic academic research.

The measure comes amid growing congressional concern about increasing collaboration between U.S. pharmaceutical companies and Chinese drug developers. According to Moolenaar's office, cross-border licensing transactions between U.S. and Chinese biotechnology companies reached approximately $136 billion in 2025, up from less than $5 billion in 2020. Lawmakers contend that many partnerships now extend beyond licensing arrangements to include co-development agreements and transfers of drug discovery platforms and biologics manufacturing expertise.

As an example, Moolenaar's office cited a recently announced $15.2 billion co-development agreement between Bristol Myers Squibb and Hengrui Pharmaceuticals involving early-stage drug candidates and the sharing of intellectual property and technical know-how.

Supporters of the legislation also raised concerns about China's role in global clinical research. Moolenaar's office argued that China's rapidly expanding clinical trial infrastructure has benefited from lower costs and faster enrollment, while citing allegations of ethical and oversight concerns at some research sites.

BINSA builds on previous congressional efforts to reduce U.S. reliance on Chinese biotechnology and pharmaceutical supply chains, including the proposed BIOSECURE Act. The legislation also complements language Moolenaar secured in the House's fiscal 2027 FDA appropriations bill that would prohibit the agency from accepting clinical trial data generated in China to support U.S. drug applications.

Last month, Moolenaar separately urged Treasury secretary Scott Bessent to restrict American investment in Chinese biotechnology companies, arguing that stronger safeguards are needed to prevent the offshoring of U.S. pharmaceutical innovation and manufacturing capacity.