US Legislation Targets Offshoring of Biotech Industry to China Amid Rising Tensions

On June 2, 2026, US lawmakers introduced the Biotech Investment National Security Act (BINSA) to prevent offshoring of the biotech industry to China. This legislation mandates that American investments in Chinese biotech firms undergo scrutiny under the Comprehensive Outbound Investment National Security (COINS) Act. The act aims to protect US pharmaceutical production and innovation, as American companies like Pfizer engage in significant licensing deals with Chinese firms. In the first quarter of 2026, Chinese biotech companies secured a record $60 billion in cross-border licensing deals, raising alarms in Washington about dependency on Chinese supply chains. Congressman John Moolenaar emphasized that US capital flowing to Chinese biotech aids China's pharmaceutical strategy and threatens US national security. The legislation seeks to ensure that US investments do not inadvertently bolster Chinese biotech capabilities that could undermine American interests.

Key Points: • The Biotech Investment National Security Act was introduced to prevent US biotech offshoring to China. • Chinese biotech firms secured $60 billion in cross-border deals in Q1 2026, raising US concerns. • US investments in Chinese biotech will now be subject to scrutiny under the COINS Act.