March 28, 2024

U.S. Officials Allege Unauthorized Transfer of U.S. Intellectual Property by Chinese Biotech Firm WuXi AppTec 🇺🇸🇨🇳

U.S. intelligence officials recently briefed senators on allegations that Chinese pharmaceutical firm WuXi AppTec had transferred U.S. intellectual property to Beijing without consent, according to sources familiar with the matter. The briefing, led by the FBI, the State Department, and the Office of the Director of National Intelligence, raised concerns about certain Chinese biotech companies contributing technology or research for potential use by China’s military. WuXi AppTec denied the allegations, emphasizing its commitment to safeguarding customer information and compliance with U.S. authorities’ requirements, while China’s embassy in Washington dismissed claims that the company posed a national security threat. The briefing coincided with legislative efforts to address biosecurity threats, including proposed bills that could restrict business with Chinese biotech companies on national security grounds.

Amid mounting concerns, the Biotechnology Innovation Organization (BIO), initially opposed to including WuXi AppTec in the legislation, reversed its stance, citing national security interests. Pressure from U.S. lawmakers, coupled with concerns raised during the briefing, prompted BIO to end its ties with WuXi AppTec and support biosecurity legislation. The development underscores growing scrutiny of Chinese biotech firms and efforts to safeguard U.S. intellectual property amid broader geopolitical tensions.

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