Treasury Proposal Exempts China Biotech Licensing Deals — SkimNews
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- Treasury proposed last week to limit U.S. investment in the Chinese biotech industry, prompting debate over whether such restrictions are needed.
- U.S. biopharma players are weighing whether to boost domestic research and development or try to prevent Chinese biotechs from catching up, with some questioning whether China's advance can be slowed at all.
- The proposed rule is more aggressive than some industry participants anticipated, shifting the discussion from the case for restrictions to their effects.
- A Treasury official said licensing deals are exempt, with that carve-out sitting at the heart of disagreements over how the proposal would affect the industry.
Why it matters: For U.S. biopharma players with licensing deals, the material distinction in Treasury's proposal from last week is which activities remain available: licensing is exempt. That carve-out explains why the industry debate has moved from whether to restrict Chinese biotech investment toward how far the rule should reach.
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