Lawmakers Urge Biden Administration to Blacklist WuXi AppTec Over Alleged Connections to Chinese Military
A bipartisan group of lawmakers has called on the Biden administration to investigate Chinese biotech firm WuXi AppTec and its subsidiary, WuXi Biologics, due to their alleged ties to the Chinese military. The lawmakers argue that the company’s connection to the Chinese Communist Party (CCP) and its People’s Liberation Army (PLA) poses a potential threat to U.S. national security.
In a letter addressed to Treasury Secretary Janet Yellen, Defense Secretary Lloyd Austin, and Commerce Secretary Gina Raimondo, the lawmakers raised concerns about WuXi AppTec and WuXi Biologics becoming a global pharmaceutical and research-services giant that could threaten U.S. intellectual property and national security. They cited numerous examples of the companies’ connection to the CCP and the Chinese military and urged the Biden administration to blacklist the company.
One piece of evidence pointed out by the lawmakers is that the chairman of WuXi AppTec has publicly commended the CCP branch work in the company and called on Party branches and members to play an active role. Additionally, Wuxi Biologics has partnered with major U.S. biotech entities such as Pfizer, AstraZeneca, GlaxoSmithKline (GSK), and state-funded U.S. labs. These partnerships involve research on Alzheimer’s disease, vaccine component production, and cancer research, among other projects.
WuXi AppTec has multiple offices, manufacturing facilities, and labs in the United States. The lawmakers allege that the Chinese firm has received investment from various PLA funds, including the AVIC Military-Civil Integration Selected Hybrid Securities Investment Fund. They also mentioned a résumé for WuXi Biologics CEO Chen Zhisheng, which listed him as a visiting professor at China’s Academy of Military Medical Sciences.
The letter emphasizes the importance of the U.S. government using licensing, sanctions, and related tools to address the risks posed by any Chinese biotechnology company that threatens U.S. national security or carries out human rights abuses. It is part of a broader effort by Congress to target CCP-affiliated firms that pose national security risks to the United States.
In fact, last month, Representative Mike Gallagher introduced the BIOSECURE Act, which aims to prohibit federally funded medical providers from funding Chinese biotechnology companies that could pose a risk to national security. The bill specifically targets several top Chinese firms with ties to the CCP and PLA, including WuXi AppTec.
Gallagher expressed concerns that the genetic data collected by Chinese biotech firm BGI, one of the companies mentioned in the bill, could be used by the CCP for malicious purposes, potentially developing a bioweapon to target the American people.
The introduction of the BIOSECURE Act has already had an impact on WuXi AppTec and WuXi Biologics, with shares plunging over 25 percent since the draft bill was introduced. This is not the first time WuXi AppTec has faced challenges, as the company was delisted from the New York Stock Exchange in 2015 and faced a class-action lawsuit in 2019.
The lawmakers’ letter and the introduction of the BIOSECURE Act highlight growing concerns about Chinese biotech firms and their potential national security risks. It remains to be seen how the Biden administration will respond to these calls for investigation and potential blacklisting of WuXi AppTec. As tensions between the United States and China continue to rise, scrutiny of Chinese companies operating in sensitive sectors is likely to intensify.
