Treasury to tighten scrutiny of China biotech acquisitions under upcoming rules

Treasury Secretary Scott Bessent announced on Sept 9 2026 that the Treasury Department will issue new guidance that makes it harder for U.S. pharma companies to complete biotech deals in China.

The announcement follows months of industry effort to avoid a harsh clampdown on acquiring Chinese assets, but the new rules will impose stricter assessment criteria and could delay or block transactions.

Companies with ongoing or planned China biotech acquisitions are expected to reassess their strategies, as the tighter oversight may affect deal timing and valuation, adding uncertainty for investors.