US Treasury drafts rules to curb American investment in Chinese biotech firms

The Treasury Department has released draft regulations that would impose broad restrictions on U.S. companies and venture capital firms investing in or acquiring drug and biotechnology assets linked to China.

Under the proposal, many categories of Chinese biotech assets would be off-limits, limiting the ability of U.S. investors to fund research, development, or partnerships with Chinese firms.

The rules aim to address national security concerns, but industry groups warn they could disrupt existing collaborations and reduce capital flow to Chinese biotech innovators.

The draft is open for public comment, and the final policy could shape cross-border investment strategies for pharmaceutical companies and investors in the coming years.