Archive · 22 Sep 2026
Drugmakers Press Trump Administration to Preserve China Biotechnology Deals
Big drug companies want to keep making agreements with Chinese biotechnology companies.
These agreements can give them access to new medicines being developed in China.
The companies say China can test drugs quickly and has become an important place for medical research.
They also need new medicines because some of their older drugs will soon face competition.
A 2025 U.S. law requires reviews of certain investments involving sensitive technology in countries such as China.
The Treasury Department is deciding whether and how the rules will cover biotechnology.
Some lawmakers say Chinese biotech deals could create security, data-protection and ethical problems.
Other lawmakers and industry representatives want fewer restrictions so U.S. companies can continue competing and developing medicines.
A planned meeting between President Trump and President Xi Jinping could influence the final approach.
Pharmaceutical companies are urging the Trump administration to preserve their ability to license promising drug candidates from Chinese firms.
Treasury Department rules under the 2025 COINS law are expected by March and may determine how Chinese biotech investments are reviewed.
Chinese companies signed more than 110 licensing deals abroad through August 5, totaling $6.2 billion in upfront payments.
Industry representatives say China offers faster clinical-trial recruitment and a growing source of early-stage oncology and immunology research.
Lawmakers and some smaller biotechs warn that Chinese dealmaking could create data, ethics, national-security and competitive risks for the United States.
- Who
- Western pharmaceutical companies, the Pharmaceutical Research and Manufacturers of America, the Treasury Department, and lawmakers including John Moolenaar and Debbie Dingell.
- What
- They are debating whether U.S. drug companies should retain broad access to licensing and investment deals with Chinese biotechnology companies.
- When
- The rules are being written ahead of a March deadline; President Trump is meeting Xi Jinping this week, and the deal figures cited run through August 5.
- Where
- The deals involve Chinese biotechnology companies, with proposed U.S. investment reviews conducted by the Treasury Department.
- Why
- Drugmakers want access to promising experimental medicines and China’s drug-development advantages, while lawmakers cite national-security, data-protection, ethics and competitive concerns.
Pharmaceutical Industry and Deal Supporters
National-Security and Industry Critics
Access to Chinese drug candidates
Pharmaceutical Industry and Deal Supporters
Pharmaceutical companies and PhRMA say restrictions could limit access to a growing source of promising experimental medicines and weaken U.S. competitiveness.
National-Security and Industry Critics
Critics argue that expanding Chinese biotech dealmaking could threaten the U.S. industry’s technological edge and help China’s biotechnology sector grow.
Investment regulation
Pharmaceutical Industry and Deal Supporters
PhRMA says the United States should avoid additional restrictions and instead become the most attractive place to invest and innovate.
National-Security and Industry Critics
John Moolenaar and Debbie Dingell have proposed adding Defense Department review because they view Chinese biotech transactions as potential national-security risks.
Research standards and data
Pharmaceutical Industry and Deal Supporters
Industry representatives argue that deals with China do not diminish U.S. drug-development capabilities.
National-Security and Industry Critics
Lawmakers have questioned companies about data protection and ethics at Chinese study sites, while some smaller biotechs say the rise of similar Chinese treatments is causing them to conceal their science longer.
- Law involved
- The 2025 Comprehensive Outbound Investment National Security Act, or COINS, requires reviews of certain investments involving sensitive technology.
- Expected rule deadline
- Treasury Department rules under the law need to be finalized by March.
- Chinese licensing activity
- Chinese companies signed more than 110 licensing deals abroad through August 5, involving $6.2 billion in upfront payments.
- Recent comparison
- Chinese companies signed 92 such deals worth $5.6 billion in all of 2025 and 59 in 2023, according to Norstella.
- Largest drugmaker payer
- Pfizer committed $2.15 billion across five Chinese licensing deals since 2022, more than any other drugmaker cited.
- Proposed legislation
- The Biotech Investment National Security Act would add Defense Department review of China biotech dealmaking.
- Chinese industry target
- China’s industry ministry set a goal for China-developed first-in-class drugs to represent 25% of the global total by 2030.