Bipartisan lawmakers in the US House of Representatives have introduced legislation that would place American investments and technology transfers into China's biotechnology sector under national security review, signalling Washington's hardening stance on Beijing's expanding footprint in global pharmaceutical research and manufacturing. The Biotech Investment National Security Act (BINSA), unveiled in early June, would fold biotech into the screening framework already covering other strategic sectors.

What the bill proposes

BINSA would add biotechnology to the sectors covered under the Comprehensive Outbound Investment National Security (COINS) Act, requiring government review of select US investments, licensing agreements and joint ventures involving Chinese biotech firms. The US Treasury Department would screen pharmaceutical licensing deals, equity investments and intellectual property transfers tied to Chinese entities.

The measure directs Treasury to issue implementing regulations within one year, after consulting the Departments of Health and Human Services and Defence, and the Director of National Intelligence. The US Defence Department would have 60 days to assess whether American capital flows into Chinese biotech damage US national security and military readiness.

Why lawmakers are alarmed

Proponents argue that American pharmaceutical majors are increasingly handing over valuable intellectual property, research capabilities and manufacturing know-how to Chinese partners, creating long-term strategic dependencies. Cross-border licensing transactions between Western drugmakers and Chinese biotech firms reportedly touched $136 billion in 2025, against less than $5 billion in 2020 — a more than 25-fold surge in five years.

“This legislation will protect research, innovation, and the medicines Americans depend on. Right now, American companies including Pfizer and Bristol Myers Squibb are making dangerous deals with Chinese biotech companies that threaten the future of American pharmaceutical production,” said Rep. John Moolenaar, chairman of the House Select Committee on China.

“We must not allow American investment, expertise, and technology to offshore our biotech industry, hand Chinese companies another chokehold over our economy, and hollow out our nation's research infrastructure,” Moolenaar added.

The bipartisan push

The bill was introduced jointly by Moolenaar and Rep. Debbie Dingell, underscoring rare cross-aisle alignment on China policy. “Biotechnology will shape the future of medicine, agriculture, manufacturing, and national security,” Dingell said.

“The United States must remain the global leader in innovation, and we cannot afford to be dependent on foreign competitors – like the People's Republic of China – for critical pharmaceutical ingredients, drug development, and medical supply chains,” she said.

What's in and what's out

The legislation flags pharmaceutical products, biological products, therapeutic compounds, drug-discovery platforms, clinical research capabilities, biologics manufacturing and related IP transfers as areas that could fall under outbound investment screening. It specifically excludes agricultural biotechnology, industrial fermentation unrelated to pharmaceutical production and basic academic research.

The bigger Washington shift

BINSA fits a broader pattern of US efforts to reduce reliance on China across sectors considered strategically critical — semiconductors, artificial intelligence, critical minerals and advanced manufacturing. Policymakers from both parties have sharpened focus on supply-chain vulnerabilities first exposed during the Covid-19 pandemic. With biotech now formally on that list, the next test will be how Treasury operationalises the screening without freezing legitimate cross-border R&D collaboration.