Washington, June 3 (IANS) Bipartisan lawmakers in the US House of Representatives have introduced legislation that would subject American investments and technology transfers in China’s biotechnology sector to national security scrutiny, reflecting growing concerns in Washington over Beijing’s expanding role in global pharmaceutical research and manufacturing.

The proposed Biotech Investment National Security Act (BINSA) would add biotechnology to sectors covered under the Comprehensive Outbound Investment National Security (COINS) Act, requiring government review of certain US investments, licensing agreements and joint ventures involving Chinese biotechnology firms.

Proponents of the legislation argue that American pharmaceutical companies are increasingly transferring valuable intellectual property, research capabilities and manufacturing expertise to China, potentially creating long-term strategic dependencies.

“This legislation will protect research, innovation, and the medicines Americans depend on. Right now, American companies including Pfizer and Bristol Myers Squibb are making dangerous deals with Chinese biotech companies that threaten the future of American pharmaceutical production,” said Rep. John Moolenaar, chairman of the House Select Committee on China.

“We must not allow American investment, expertise, and technology to offshore our biotech industry, hand Chinese companies another chokehold over our economy, and hollow out our nation’s research infrastructure,” he said.

The legislation was introduced jointly by Moolenaar and Rep. Debbie Dingell.

“Biotechnology will shape the future of medicine, agriculture, manufacturing, and national security,” Dingell said.

“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,” she said.

Cross-border licensing transactions involving Western pharmaceutical companies and Chinese biotechnology firms totalled approximately $136 billion in 2025, compared with less than $5 billion in 2020, they said.

The bill would require Treasury Department review of pharmaceutical licensing agreements, joint ventures and equity investments involving Chinese entities. Licensing arrangements involving technology transfers and intellectual property would also fall under review requirements.

The measure directs the Treasury Department to issue implementing regulations within one year after consulting the Departments of Health and Human Services and Defence, as well as the Director of National Intelligence.

It would also require the US Defence Department to assess within 60 days whether American capital flows into China’s biotechnology sector negatively affect US national security and military readiness.

Lawmakers backing the proposal argue that biotechnology has become a strategic sector with implications extending beyond healthcare into economic competitiveness and national security.

The legislation identifies pharmaceutical products, biological products, therapeutic compounds, drug-discovery platforms, clinical research capabilities, biologics manufacturing and related intellectual property transfers as areas that could fall under outbound investment screening.

The proposal specifically excludes agricultural biotechnology, industrial fermentation unrelated to pharmaceutical production and basic academic research.

The bill follows broader efforts in Washington to reduce reliance on China in sectors considered strategically important, including semiconductors, artificial intelligence, critical minerals and advanced manufacturing. Policymakers from both major parties have increasingly focused on supply-chain vulnerabilities exposed during the Covid-19 pandemic.

–IANS

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