STAT+: Treasury proposes major restrictions to U.S. investment in Chinese biotech sector

STAT PlusBreaking News Treasury proposes major restrictions to U.S. investment in Chinese biotech sector The proposal is more aggressive than anticipated, but it could change Manage alerts for this article Save this story for later Share this article By John Wilkerson and Damian GardeOct. 23, 2026 John Wilkerson[email protected]John writes about the politics of health care, and he is the author of the twice-weekly D.C.

Diagnosis newsletter. You can reach John on Signal at John_Wilkerson.07.Damian Garde[email protected]Damian covers the global drug industry and contributes to STAT’s industry-leading events. You can reach Damian on Signal at damiangarde.67.

WASHINGTON — The Trump administration late on Thursday proposed a rule that would severely restrict future U.S. investment in the Chinese biotech sector but still allow American drugmakers to buy the rights to medicines invented in the country. The Treasury Department proposed the rule to implement a law, called the Comprehensive Outbound Investment National Security Act, that restricts U.S.

investment in industries of concern to national security. The department added biotechnology to the list of industries subject to COINS restrictions, joining the likes of semiconductors, artificial intelligence, and quantum technology.Advertisement The proposal would prohibit U.S. companies from entering financial transactions with Chinese biotech companies or Chinese manufacturers of biotechnology-related equipment and tools, according to the research firm Veda.

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Subscribe Log In biotechnology, China, drug development, Pharmaceuticals, Policy, research, STAT+ Submit a correction requestReprints John Wilkerson Washington Correspondent John writes about the politics of health care, and he is the author of the twice-weekly D.C. Diagnosis newsletter. You can reach John on Signal at John_Wilkerson.07.

Damian Garde Reporter at Large, Live and Feature Journalism Damian covers the global drug industry and contributes to STAT’s industry-leading events. You can reach Damian on Signal at damiangarde.67. Newsletter The latest updates in federal health agencies, research institutes, and U.S.

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