US Senate Committee to Hold Hearing on China’s WuXi AppTec and BGI Bill
Senate Committee to Discuss Bill Targeting Chinese Biotechnology Companies
A U.S. Senate committee announced plans to hold a hearing on March 6 to address a proposed bill that would restrict federal agencies from engaging with Chinese biotechnology firms like BGI and WuXi AppTec. The legislation aims to prevent these companies from accessing U.S. government contracts and using their equipment or services.
Concerns Over National Security and Genetic Data
The bill, spearheaded by Democratic Senator Gary Peters, seeks to safeguard American genetic data and personal health information from theft by foreign adversaries. It also prohibits government contracts with any entities associated with the targeted Chinese companies.
House Legislation and Impact on WuXi AppTec
Meanwhile, a House bill led by Republican Congressman Mike Gallagher accuses these companies of supporting Beijing’s military efforts. The proposed restrictions have caused WuXi AppTec’s stock value to plummet amid fears about its U.S. business prospects.
Rebuttal and Denial of Allegations
WuXi AppTec has refuted claims of ties to the Chinese military and assured that its operations do not pose national security threats. The company, with significant revenue from the U.S. market, emphasizes its contributions to the pharmaceutical and healthcare sectors.
BGI Group’s Defense and Market Presence
Similarly, BGI Group denies allegations of government control and emphasizes its commitment to data protection. The company criticizes the proposed legislation for potentially driving them out of the U.S. market, jeopardizing ongoing investments and collaborations.
Bipartisan Concerns and Potential Sanctions
A bipartisan group of lawmakers has urged top U.S. officials to review WuXi AppTec for possible sanctions due to alleged links to the Chinese government and military. These concerns have led to a sharp decline in the company’s stock value in recent weeks.
