{
  "id": 16573530,
  "title": "Could new US investment curbs complicate China’s biotech licensing surge?",
  "url": "https://urgent.news/2026/10/26/could-new-us-investment-curbs-complicate-chinas-biotech-licensing-16573530",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-10-26T08:00:23.000Z",
  "source": {
    "name": "SCMP Tech",
    "slug": "scmp-tech",
    "url": "https://www.scmp.com/business/article/3372151/could-new-us-investment-curbs-complicate-chinas-biotech-licensing-surge"
  },
  "original_language": "en",
  "account": "Chinese biotech companies are encountering potential obstacles in their international growth due to the US administration's proposed investment limitations, even though drug licensing agreements are presently unaffected, according to analysts. The US Treasury Department's draft rules, unveiled last week, could make it increasingly difficult for Chinese biotech firms to draw direct US investment or collaborate on joint ventures, as per David Zhang, an analyst at Trivium China. The US Treasury Secretary, Scott Bessent, incorporated biotechnology into the list of sectors under increased scrutiny in an outbound investment screening program, which covers a wide array of transactions involving \"countries of concern,\" including China. These restricted transactions include acquiring equity stakes and establishing joint ventures, as stated by the Treasury Department. The proposals come as Washington intensifies its concern over China's expanding biotech industry, with the aim of preventing adversaries from leveraging US investment to develop critical technologies that could pose a threat to US national security, as stated by Bessent. Chinese firms have emerged as significant players in the global biopharmaceutical sector in recent years, with the value of out-licensing agreements involving China-developed innovative drugs reaching US$130 billion this year, nearly matching the full-year total for 2025, as reported by China's National Development and Reform Commission. The Treasury Department, as previously expected, refrained from restricting traditional drug licensing deals, which Zhang noted had been a significant contributor to China's biotech expansion in recent years. The new regulations are unlikely to result in a \"full-scale retreat from Chinese biotech,\" as companies are expected to focus more on structuring cross-border transactions in a manner that sidesteps direct equity investment, according to Zhang. Cross-border biotech deals have increasingly gravitated towards co-development arrangements and broader platform partnerships as Chinese firms' resources and ambitions have grown, as stated by Cui Cui, head of Asia healthcare research at Jefferies, in a recent note. Additionally, China has introduced its own biotech export control measures, proposing bans on 14 technologies across sectors, including artificial intelligence, biotechnology, and photovoltaics. These restrictions will prohibit the export of certain cell and gene therapy platforms as well as small interfering RNA technology platforms. While both Chinese and US measures are reportedly narrower than anticipated, they are likely to prompt companies in both nations to \"adjust\" and \"protect\" the flow of capital and core intellectual property, as per Cui. Both US and Chinese actions can be seen as part of a \"curious symmetry,\" with Washington seeking to restrict investments that could bolster China's technological capabilities, while Beijing aims to maintain control over certain foundational Chinese technologies, according to Morgan Xu, a partner at law firm Foley Hoag in Washington. The US Treasury Department's proposed restrictions face uncertainty, however, amid opposition from certain segments of the industry. John F. Crowley, president and CEO of the Biotechnology Innovation Organisation, expressed concerns during a statement after the Treasury Department announced the proposals, stating, \"We cannot restrict our way to success... We need to ensure that we do not have an overly broad approach that would create uncertainty for innovators and investors, and that may unintentionally risk weakening US biotech competitiveness.\" Nevertheless, there is bipartisan political support for stricter restrictions, including on licensing agreements, according to Zhang. \"I'd expect some version of the biotech restrictions to move forward,\" he said. \"The bigger question is how far Treasury ultimately wants to go.\"",
  "summary": "Chinese biotech firms face fresh headwinds in their global expansion as Washington’s proposed outbound investment restrictions threaten to disrupt deal structures, even though drug licensing agreements remain untouched for now, analysts say. The US Treasury Department’s draft rules released last week would “make it much harder for Chinese biotech firms to attract direct US investment or enter…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "China warns of countermeasures over expanded US investment curbs on biotech",
        "url": "https://urgent.news/2026/10/26/china-warns-of-countermeasures-over-expanded-us-investment-curbs-on",
        "published": "2026-10-26T00:40:58.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}