China-based biotech firms respond to U.S. House passing draft bill designating them as ‘biotechnology company of concern’

  • WuXi AppTec and WuXi Biologics deny posing a security risk to the U.S.
  • The draft Biosecure Act is pre-emptive and unjustified without due process, according to the companies
  • U.S. House passed the draft bill that designates WuXi as a ‘biotechnology company of concern’
  • WuXi companies were among those named in the bill targeting Beijing Genomics Institute and other Chinese biotech entities
  • The U.S. is working to limit China’s influence in its markets over national security concerns

WuXi AppTec and WuXi Biologics have denied posing a security risk to the United States or any other country after the U.S. House of Representatives passed a draft Biosecure Act that designates them as a ‘biotechnology company of concern’. The companies stated that the bill is pre-emptive and unjustified without due process. The draft bill aims to bar federal contracts with Beijing Genomics Institute and some Chinese biotech entities, which allegedly have connections with the People’s Liberation Army. The U.S. is actively working to limit China’s influence in its markets over national security concerns, accusing some companies of posing a threat or collaborating with the Beijing government to gather data. WuXi AppTec and WuXi Biologics clarified that they don’t have a human genomics business or collect human genomic data in the U.S., China, or elsewhere. The companies will work closely with their advisers to engage with relevant stakeholders involved in the legislative process.

Factuality Level: 7
Factuality Justification: The article provides accurate information about WuXi AppTec’s response to the draft Biosecure Act and denies any security risks posed by their company. However, it includes some sensationalism in mentioning TikTok’s data collection practices which are unrelated to the main topic.
Noise Level: 3
Noise Justification: The article provides a clear statement from WuXi AppTec denying any security risks and addresses the draft Biosecure Act, but could benefit from more in-depth analysis of the broader implications and context of U.S.-China tensions in biotechnology.
Private Companies: WuXi AppTec,WuXi Biologics,Beijing Genomics Institute,ByteDance
Key People:

Financial Relevance: Yes
Financial Markets Impacted: U.S. financial markets may be impacted due to concerns over Chinese biotech companies’ potential security risks and restrictions on federal contracts.
Financial Rating Justification: The article discusses the potential impact of the draft Biosecure Act on U.S. financial markets as it aims to restrict federal contracts with certain Chinese biotechnology companies, which could affect their operations in the U.S. and may have implications for related industries.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The situation described involves a political crisis related to the U.S. House passing a draft Biosecure Act that designates WuXi AppTec as a ‘biotechnology company of concern,’ but it does not seem to have significant impact or consequences.
Move Size: No market move size mentioned.
Sector: Healthcare
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.wsj.com