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Senate targets Chinese biotech, investments in defence bill


The US Senate backed legislation that would bar certain Chinese biotech companies from receiving federal funding and prohibit American investments in sensitive Chinese industries late Thursday night.

Both bipartisan measures were added to the National Defence Authorisation Act on voice votes, reflecting widespread support. The House and Senate must agree on identical bills and have it signed by President Donald Trump for it to become law.

Yet even with the Senate vote, it’s not certain the provision will ultimately become law. For example, last year’s version of the Biosecure Act was omitted from the final Defence policy bill amid concerns by some lawmakers about naming specific companies.

This year’s Biosecure Act is written slightly differently. It would instead bar biotech companies from US funding that are deemed to be “biotechnology companies of concern.” Those could include Chinese military companies, as well as others that meet certain criteria, although the administration would have the ability to grant one-year waivers.

“The threat is real and growing,” said Senator Bill Hagerty, a Tennessee Republican. “Communist China has openly identified biotechnology as a key domain for future warfare.”

While the revised Biosecure Act doesn’t name companies that may face future scrutiny, firms previously targeted by Hagerty and Michigan Democrat Gary Peters included BGI Group, BGI spinoffs MGI Tech Co. and MGI’s US subsidiary Complete Genomics Inc., WuXi AppTec Co. and WuXi Biologics.

Another measure added to the annual Defence policy bill is the FIGHT China Act, by Texas Republican John Cornyn and Nevada Democrat Catherine Cortez Masto.

That measure would target outbound investment in China and authorise sanctions. Among other provisions, it would prohibit US investment in certain AI models, hypersonic missiles, advanced semiconductors, quantum computers and military products.

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