US proposes new biotech investment limits on China, but licensing deals remain allowed

The U.S. Treasury announced a proposal to curb outbound investments in Chinese biotechnology, citing national‑security concerns. The plan would limit U.S. persons from funding certain bio‑derived compounds, biomanufacturing equipment, facilities, and biotech work tied to biological design or experimentation.

Despite the broader restrictions, the proposal explicitly exempts licensing agreements, allowing pharmaceutical companies to continue partnering with Chinese firms through such deals. This mirrors a recent Chinese policy that also bars ownership transfers of specific biotechnologies while preserving licensing collaborations.

Industry leaders responded cautiously, emphasizing the need to protect security without stifling innovation. Executives said they will monitor the rules closely to ensure research and development pipelines remain uninterrupted.

The move comes as both governments adjust their biotech strategies, highlighting the growing geopolitical sensitivity surrounding advanced medical technologies.