According to Bloomberg's report on October 22nd, the Trump administration is seeking to restrict U.S. investments in Chinese biotechnology companies. The report states that given the current situation where American pharmaceutical companies rely increasingly on China for new drugs, this move could make the financial relations between the two sides more complex.
The U.S. Treasury proposed on that day to include biotechnology in the list of restricted technologies, citing so-called “national security considerations.” According to this list, investments by the United States in countries that are “foreign adversaries” will be restricted.
The proposed regulations require American investors to notify the government when engaging in certain transactions involving foreign companies that develop sensitive technologies; certain transactions will be completely prohibited under these regulations.
The report emphasizes that these regulations will expand the existing regulatory scope, which previously included investments in areas such as artificial intelligence, semiconductors, and quantum computing.
On August 11, 2025, the world’s first plant-based recombinant human serum albumin product was officially launched in Guanggu. Wuhan Heyuan Biology has developed a unique “rice hemodialysis” technology—by inserting the human serum albumin gene into rice, it is possible to extract 20 to 30 grams of high-purity albumin per kilogram of rice. This has led to the creation of the world’s first plant-based “biopharmaceutical factory”. This “Chinese original” technology, derived from rice, could change the situation where China relies on imports for 60% of its life-saving medicines. IC Photo
Bloomberg notes that Chinese biotech companies have become an important source of innovation in the pharmaceutical industry. American pharmaceutical companies are increasingly turning to China for new products to enrich their research and development pipelines, and they use licensing agreements to introduce promising therapies from China.
In addition, the regulations proposed by the US will also restrict investments in Chinese companies that develop brain-computer interfaces. This emerging field has seen many startups dedicated to developing technologies that allow humans to control electronic devices directly through the brain.
Currently, the brain science technology industries in both China and the United States are booming. Startups are competing to develop implants, helmets, and other related devices.
The report suggests that these restrictive measures may add complexity to U.S. investments in Chinese biotech companies, although the specific impact on cooperation in the pharmaceutical industry remains unclear.
Currently, the U.S. Department of Treasury is seeking public feedback before releasing the final rules. Until this process is completed, the relevant restrictions will not take effect.
On June 21 this year, the Hong Kong-based South China Morning Post reported that industry analysts said as the United States intensifies restrictions on investment and technology transfer, cross-border biotechnology transactions between China and the US are becoming more complex and may face a certain degree of slowdown.
Dutch International Group (ING Research) Senior Healthcare Economist Diederik Stadig said, “Future will face more geopolitical scrutiny, which might lead to a slight decrease in trading volume compared to the absence of scrutiny.”
He pointed out that despite the increasing regulatory obstacles, the general trend of Western pharmaceutical companies forming partnerships with Chinese biotechnology firms is unlikely to reverse. 'Given the growing importance of innovation in China, Western pharmaceutical companies will continue to enter into deals with Chinese counterparts. We expect this trend to accelerate in the coming years.'
Previously, the U.S. Congress also passed bills such as the Biosafety Act. At that time, Mao Ning, a spokesman for the Chinese Ministry of Foreign Affairs, responded that China firmly opposes the passage of such bills by the U.S. House of Representatives. In response to discriminatory measures taken against Chinese enterprises, the United States should abandon its ideological biases, truly respect market principles and economic trade rules, stop promoting such bills, stop using various excuses to unjustly suppress Chinese enterprises, and provide fair and non-discriminatory business environments for enterprises from all countries. China will continue to firmly safeguard the legitimate rights and interests of its own enterprises, and we also support Chinese enterprises in safeguarding their own rights and interests in accordance with the law.
