A bill in the U.S. Senate that would restrict business with China's BGI, WuXi Apptec and other biotech companies on national security grounds faces its first big test in Congress on Wednesday. The bill has spurred deep concern among investors, driving a sell-off in the shares of WuXi AppTec when news of its introduction first reached Chinese markets last month. As currently written, it would prohibit federal agencies from contracting with China's BGI, MGI, Complete Genomics, WuXi AppTec, their affiliates and other biotechnology companies deemed of concern. WuXi Apptec, which provides R&D and manufacturing services to the pharmaceutical and healthcare industry, allegedly has ties to the Chinese military, according to the House version of the bill. Once it moves out of committee, the bill must pass in both the full Senate and the House, and then needs be signed by the president.

Source: The Standard March 06, 2024 13:14 UTC