U.S. Weighs Looser Rules for Pharma Deals with Chinese Companies Amid Security Debate
The Trump administration is drafting Treasury rules that would let U.S. drugmakers keep most licensing agreements with Chinese firms, despite broader China investment curbs.
According to sources, the Trump administration is preparing Treasury guidelines that would allow U.S. pharmaceutical companies to maintain most licensing arrangements with Chinese drugmakers, even as the broader policy tightens investment restrictions on China. The rules would only block deals involving pathogens or biotech that could be weaponized, a much softer stance than proposals from some congressional members and smaller biotech firms concerned about strategic dependence.
Licensing agreements with Chinese biotech were valued at $115 billion last year, feeding U.S. pipelines and channeling large sums to Chinese firms. Pfizer and Bristol Myers Squibb have pressed the administration, with Pfizer CEO Albert Bourla saying the collaborations do not threaten national security. Lawmakers such as John Moolenaar, Debbie Dingell, and Ginkgo Bioworks CEO Jason Kelly are urging tighter controls, while others like Jake Auchincloss argue restrictions would be ineffective. The final rules are expected after President Donald Trump's upcoming meeting with Chinese President Xi Jinping.
Why it matters
U.S. drug development and national security could be shaped by how tightly America regulates biotech partnerships with China.
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