China tightens grip on biotech platform ownership but foreign licensing deals still okay

News Business Deals China tightens grip on biotech platform ownership but foreign licensing deals still okay October 19, 2026 | 2 min read | Annalee Armstrong Twitter LinkedIn Facebook Email Print The new policy signals an escalation by the Chinese government on biopharma deals but is unlikely to have a major impact given that the vast majority of foreign interest in Chinese biotech comes in the form of licensing agreements. China’s government has proposed a ban on the sale of certain biotechnology platforms, including cell and gene therapy tech—but the policy does not apply to the lucrative licensing deals that have been proliferating in the region.The new policy from China’s ministries of Commerce and Science and Technology bans the transfer of ownership for five technologies related to cell and gene therapy, small nucleic acid drugs and pathogenic microorganisms. An exemption allows for licensing transactions in these technologies, however.

The new policy was released on Friday and will be open to public comment.While the policy is an escalation of the Chinese government’s oversight of intellectual property, it’s unlikely to have much impact over the ongoing partnerships that have defined the biotech industry over the past couple years. Licensing deals for China-based assets have grown to 58% of all licensing deal value so far this year, according to a recent analysis from global investment bank Locust Walk. This compares to 26% for U.S.-based companies.

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October 15, 2026 · 1 min read · Annalee Armstrong Read more However, full acquisitions of Chinese technology by foreign firms are rare. So far this year, U.S. companies have accounted for 91% of all M&A deal value, whereas China-based biotechs made up just 1%, according to Locust Walk.

Of the 89 acquisitions so far this year, just 6% were for China-headquartered assets or companies compared to 78% for U.S. firms. That was, however, still twice as many as last year, when 3% of 80 M&A deals involved products or companies from China.In September, the Chinese government released a five-year plan for the biotech industry, seeking to transform the rising sector into a $522 billion powerhouse by 2030.

The plan lays out a path to having Chinese-developed assets achieve a quarter of all global blockbuster drugs on the market. The dramatic policy did not surprise industry insiders after previous plans to bolster the sector have delivered as promised.“They are executing,” said Jeremy Levin, executive chair of Ovid Therapeutics, during a BioSpace webinar last week. “They’re faster.

They’re better. They are doing what they said they would.”Patroski Lawson, founder of KPM Group and the American Biotech Innovation Alliance, said the U.S. needs to similarly develop a plan by bringing together all stakeholders.

He also called for a movement to reach everyday Americans to stress the importance of a homegrown industry.“China is gaining on us,” Lawson said. “What are we going to do about it? Are we going to continue complaining?

Are we going to get our act together?” China China plans to transform biotech sector into $522B powerhouse by 2030 A new five-year biotech plan has been released by the Chinese government, revealing ambitious goals such as achieving five blockbuster medicines on the global markets in that time. September 18, 2026 · 2 min read · Annalee Armstrong Read more Twitter LinkedIn Facebook Email Print China Mergers & acquisitions Annalee Armstrong Annalee Armstrong is an award-winning biopharma journalist covering the business of drug development. She has been a journalist for more than 18 years, covering the pharmaceutical and biotech industry for the last eight.

She is senior editor at BioSpace and curates the Biopharm Executive newsletter every Wednesday. You can reach her at annalee.armstrong@biospace.com. Follow her on LinkedIn.