Connect with us

Business

Bill To Restrict BGI And WuXi AppTec To Be Voted On By US House Committee

Avatar of Salman Ahmad

Published

on

WuXi AppTec
FILE PHOTO: A sign outside a Wuxi AppTec facility is pictured, in San Diego, U.S., March 25, 2024. REUTERS/Michael Erman/File Photo

(CTN News) – The House of Representatives will vote on Wednesday on a bill prohibiting business with China’s BGI, WuXi AppTec, and other biotechnology companies due to national security concerns.

These businesses would be subject to restrictions as a result of the proposal.

Even in the event that the House Committee on Oversight and Accountability were to give its approval to the Biosecure Act, it would still be necessary for the full House and Senate to vote on it before the president could sign it into law.

In order to lessen their reliance on Chinese research and manufacture, businesses in the United States that are involved in the pharmaceutical and healthcare industries would be compelled to comply with the regulation.

It was in March that the committee in the WuXi AppTec United States Senate that is responsible for overseeing Homeland Security and Governmental Affairs voted in favor of legislation that was quite similar to the one that was being considered.

It was disclosed earlier this week that the most recent version of the House measure offers American corporations until 2032 to end their engagement with Chinese enterprises.

As a result of this news, the shares of Chinese companies that could be affected by the situation increased in Hong Kong’s trading.

On the list of firms of concern that was included in the most recent draft, WuXi AppTec Biologics is also included. Other companies on the list include BGI, MGI, and Complete Genomics.

In addition, WuXi AppTec is listed on this list.

Individuals who are in favor of the measure claim that it is essential to WuXi AppTec safeguard the health and genetic information of American citizens from foreign rivals who might be able to utilize the information for military objectives. Furthermore, they contend that it is dangerous for China to hold a strong position in the supply chain for biotechnology since it poses a variety of risks.

The proposed legislation, which would restrict competition, is based on allegations that are both false and misleading, as stated by the businesses that are the targets of the legislation. Furthermore, they believe that they should not be included in the bill since they do not pose a threat to the state of national security in the United States of America.

The Biosecure Act would make it illegal for government entities to enter into contracts with biotechnology companies that are under suspicion of engaging in illegal activities. In addition, it would be against the law to enter into contracts with companies that take use of the services or equipment that those companies provide.

According to the annual report of Wuxi Biologics, in 2023, the company’s seventeen billion yuan in annual sales were generated from North America to the extent of more than forty-seven percent, while China was responsible for around eighteen percent of those sales.

The information that was presented by an investor indicates that during the first nine months of 2023, the United States market was responsible for two-thirds of WuXi AppTec’s revenue.

Additionally, a “company of concern” Complete Genomics is a company that was founded in the United States of America and currently operates out of San Jose, which is located in the state of California. This subsidiary is owned by MGI, which is a well-known multinational corporation that is traded on public markets.

According to BGI, a leading provider of genetic sequencing services around the world, the legislation will not only compel the company to abandon its existing location in the United States of America, but it would also require the company to completely relocate.

SEE ALSO:

Government Ministers in Thailand Squabble Over $11 Daily Wage

Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

Continue Reading

CTN News App

CTN News App

Recent News

BUY FC 24 COINS

compras monedas fc 24

Advertise here

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies