US bill on Chinese biotech firms may be more 'narrowly tailored', lawmaker says

WuXi Biologics (Cayman)

23/02/2024 03:13

By Ben Blanchard
       TAIPEI, Feb 23 (Reuters) - A bill in the U.S. Congress
targeting Chinese biotech companies may end up being more
"narrowly tailored", the U.S. lawmaker who proposed it said on
Friday, adding that he was cautiously optimistic something could
be passed this year.
    A congressional committee focused on China introduced a bill
late last month that would restrict federally funded medical
providers from allowing China's BGI Group, WuXi Apptec
 603259.SS  and other biotech firms from accessing genetic
information about Americans.
    The proposed legislation has sparked a sell-off in WuXi
shares.
    "I'm actually cautiously optimistic that we can get
something done," Republican Congressman Mike Gallagher, chair of
the House select committee on China, told reporters while on a
trip to Taiwan. 
    "Now it may end being something a little bit more narrowly
tailored but I would say, just speaking for myself, the primary
concern is BGI and the secondary is WuXi," he added.
    A companion bill in the U.S. Senate hit a delay earlier this
month.
    Gallagher said this month he will not run for re-election.
    "I won't be here next year, so we've got to get it done
before I leave," he added.
    Democratic committee member Raja Krishnamoorthi, who is
accompanying Gallagher in Taiwan, said the bill would encompass
more than just those two companies.
    "That bill actually applies to foreign adversary controlled
biotech firms, not just those two companies," he said.
    "The other big concern is that when they sell those
equipment and goods in the U.S., they are going to continue to
collect data on Americans and then funnel it back to the CCP
controlled data bases," Krishnamoorthi added, referring to
China's ruling Communist Party.
    WuXi has repeatedly said that it is not a national security
risk to any country and does not collect human genomic data in
any of its business.
    BGI has said that it supports protecting personal data, but
the legislation "which will effectively drive BGI from the U.S.
market will not accomplish this goal." 
    Units of BGI Group appear on a U.S. Department of Commerce
export control list over allegations that they pose a
"significant risk" to contributing to Chinese government
surveillance.
    Reuters also has reported that BGI was collecting genetic
data from millions of women for sweeping research on the traits
of populations, and collaborates with China's military.

 (Reporting by Ben Blanchard; editing by Miral Fahmy)
 ((ben.blanchard@thomsonreuters.com;))