• The U.S. House of Representatives passed the Biosecure Act, aimed at restricting business with certain Chinese biotech companies.
• The bill, which received broad bipartisan support, aims to protect Americans' personal health and genetic information and U.S. pharmaceutical supply chains.
• However, the bill faced opposition, with companies targeted by the bill denying any threat to U.S. national security.
• The bill's future remains uncertain as it must now pass the U.S. Senate before it can be signed into law by President Biden.

The U.S. House of Representatives recently passed the Biosecure Act, a significant piece of legislation aimed at restricting business with China's WuXi AppTec, BGI, and several other biotech companies. The bill is grounded in national security concerns, with the objective of safeguarding Americans' personal health and genetic information and protecting U.S. pharmaceutical supply chains.

The Biosecure Act received its first floor vote and was passed by a substantial majority, with 306 votes in favor and 81 against. This indicates broad bipartisan support for the measure. However, the legislation's journey is far from over. It must now pass the U.S. Senate before it can be sent to President Joe Biden to be signed into law.

The debate on the House floor saw Representatives John Moolenaar and Raja Krishnamoorthi, the chair and ranking member of the House Select Committee on China, respectively, arguing in favor of the legislation. They contended that the measure is necessary to protect the personal health and genetic information of Americans and the U.S. pharmaceutical supply chains.

Opposition and Response to the Bill

However, the bill has faced opposition. Representative Jim McGovern, a critic of China's human rights abuses, opposed the bill, arguing that he could not get a clear answer for how the companies were identified. WuXi Biologics, which is targeted by the bill, is constructing a facility in his district in Massachusetts.

In response to the House vote, WuXi AppTec expressed disappointment, stating that the vote pre-emptively and unjustifiably designates our company without due process. The company's shares, along with those of WuXi Biologics, were down more than 10% and 7% respectively in early trading on Tuesday following the vote.

The targeted companies have all maintained that the measure is based on false and misleading allegations. They deny posing any threat to U.S. national security and argue that they should not be included in the bill. BGI Group, another company named in the bill, expressed disappointment that the U.S. legislative process is being used to pick winners and losers.

Future of the Biosecure Act

The U.S. Senate's Homeland Security committee voted in March to approve a similar bill, but it is unclear if and when the full Senate will vote on the legislation. This uncertainty underscores the complexity and contentiousness of the issue, which has far-reaching implications for U.S. national security, the biotech industry, and international relations.

The passage of the Biosecure Act by the House of Representatives is reminiscent of historical events where the U.S. government has taken steps to protect national security and economic interests. For instance, during the Cold War, the U.S. government implemented various measures to restrict business and trade with the Soviet Union and other communist countries. Similarly, in recent years, the U.S. has imposed sanctions and restrictions on companies and individuals linked to countries like Iran and North Korea due to national security concerns.

However, the bill's future remains uncertain as it must now pass the U.S. Senate before it can be signed into law by President Biden.