The US Treasury Department is drafting rules that would likely allow US pharmaceutical companies to maintain most licensing deals for Chinese drugs, excluding pathogens or weaponizable biotechnology. While major drugmakers like Pfizer lobby against broad curbs to protect pipelines, some lawmakers and smaller biotechs seek tighter restrictions under the COINS Act to prevent China from dominating biotechnology innovation.
Treasury pharmaceutical investment rules
- ▪The US Treasury Department rules regarding pharmaceutical investments in China, first reported by Reuters on September 18, 2025, have not been finalized and are subject to change, particularly if President Donald Trump weighs in
- ▪The US Treasury Department is unlikely to unveil new rules governing US pharmaceutical companies' investment and licensing deals with Chinese drugmakers, first reported by Reuters on September 18, 2025, before Chinese President Xi Jinping meets with President Donald Trump in the US
- ▪The US Treasury Department is drafting rules, first reported by Reuters on September 18, 2025, for US pharmaceutical companies investing in China that would likely preserve their ability to strike most licensing deals for Chinese drugs
- ▪The proposed US Treasury Department rules, first reported by Reuters on September 18, 2025, are likely to allow US pharmaceutical companies to invest in Chinese drugs as long as they do not involve pathogens or potentially weaponizable biotechnology
US-China biotech competition
- ▪Outside licensing deals in Chinese biotechnology were valued at $115 billion in 2025, according to research firm GlobalData
- ▪Democratic Representative Jake Auchincloss stated that China is spending $100 billion on biotechnology
- ▪Almost half of the United States' deals to license drugs from abroad in 2025 were with Chinese companies, according to research firm GlobalData
Major pharma licensing deals
- ▪Pfizer announced a collaboration with Innovent Biologics in 2026 worth up to $10.5 billion covering 12 oncology programs
- ▪Bristol Myers Squibb signed a partnership with Jiangsu Hengrui Pharma in 2026 worth up to $15.2 billion
Industry lobbying efforts
- ▪Major drugmakers, including Pfizer, met with Trump administration officials to argue against broad restrictions on investments tied to Chinese drug development
- ▪Ginkgo Bioworks CEO Jason Kelly met with US Treasury officials to argue that outbound investment to China will harm the US and European pharmaceutical industry in the long term
Lawmaker restriction proposals
- ▪Republican Representative John Moolenaar and Democratic Representative Debbie Dingell are co-sponsoring a bill proposing tighter US Treasury regulation of biotechnology-related investments, licensing agreements, and joint ventures involving Chinese companies
- ▪Republican Representative John Moolenaar asked the US Treasury Department to use the COINS Act, a national security law passed in 2025 aimed at restricting outbound investment, to restrict pharmaceutical transactions with China
National security drug concerns
- ▪Pfizer CEO Albert Bourla stated that US drugmakers signing deals to license medicines from Chinese companies does not create a national security concern
- ▪Republican Representative John Moolenaar wrote in a May 2025 letter to the US Treasury Department that US capital flowing to Chinese biotechnology companies fuels China's strategy and rapid ascent in the pharmaceutical value chain
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