WASHINGTON: The US Department of Defense has taken new steps that could restrict China’s access to American biotech markets and deepen scrutiny of firms linked to Beijing’s industrial and security apparatus, according to a Reuters Breakingviews report.
The Pentagon has added Chinese biotech company WuXi AppTec to its list of firms it considers to have ties to China’s military, a designation that could significantly limit its ability to operate within US government-linked supply chains.
The move forms part of a broader US strategy to reduce dependence on Chinese pharmaceutical and biotech inputs, while tightening national security controls over critical healthcare and research sectors.
Under the designation framework, companies placed on the list may face restrictions on federal contracts, funding, and procurement, and could later be subject to wider investment and supply-chain limitations.
WuXi AppTec, which plays a major role in global drug development and is involved in the production of a significant share of medicines used in the United States, has denied any military affiliation and indicated it would challenge the designation.
US lawmakers and security officials argue that growing reliance on Chinese biotech firms poses strategic risks, particularly in areas such as pharmaceuticals and medical research. Critics of the policy warn, however, that tighter restrictions could disrupt global drug supply chains and increase costs for healthcare systems.
The latest move adds to a series of US measures targeting Chinese technology and industrial firms amid escalating strategic competition between Washington and Beijing, particularly in sectors considered critical to national security and economic resilience.