US proposes biotech investment ban on China — SkimNews
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- Treasury Department proposed a rule to implement the Comprehensive Outbound Investment National Security Act, adding biotechnology to restricted sectors like semiconductors and AI.
- U.S. companies would be prohibited from financial transactions with Chinese biotech firms and manufacturers of biotech equipment under the proposed rule.
- Chinese biotech sector is now subject to COINS restrictions, marking a significant expansion of U.S. outbound investment controls.
- American drugmakers can still buy rights to medicines invented in China, preserving access to Chinese biopharmaceutical innovation despite broader investment limits.
Why it matters: The carve-out for licensing deals means U.S. pharmaceutical companies retain access to Chinese R&D while limiting capital flows that could enhance China's strategic biotech capabilities. This balances national security concerns with commercial and medical interests, affecting billions in cross-border life sciences collaboration.
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