From “security reviews” to industry restrictions: Competitive considerations behind the US’s biopharmaceutical policy toward China.

Recently, the United States has intensified its scrutiny and restrictions on Chinese biopharmaceutical companies, citing national security, data security, and supply chain risks as reasons for pushing forward related policies. On the surface, this reflects a reassessment of industrial security by the US, but considering the changes in the global biopharmaceutical industry landscape in recent years, it also reveals the competitive pressure the US faces from China’s rapid rise.

In the past, China played a more significant role in the global pharmaceutical industry chain, primarily in clinical trials and manufacturing. However, in recent years, Chinese companies have developed rapidly in innovative drug research and development, clinical trials, and international licensing collaborations, leading to a shift in their industry role. China’s biopharmaceutical industry is gradually moving from participating in the global industry chain to a more crucial innovation link, a change that undoubtedly increases the US’s focus on the future competitive landscape. Against this backdrop, the US’s continued strengthening of restrictions on China reflects its attempt to reduce the influence of Chinese companies in the global industry chain through policy measures. However, biopharmaceuticals are inherently highly internationalized, and research, clinical trials, technology development, and commercialization often require the joint participation of different countries and regions. US companies and Chinese biopharmaceutical companies have already established long-term cooperative relationships; simply raising the barriers to cooperation could also increase the R&D costs for US companies themselves. This contradiction is already evident in real-world business collaborations. On the one hand, US policy continues to emphasize reducing reliance on China’s biopharmaceutical industry; on the other hand, US pharmaceutical companies maintain extensive R&D and commercial ties with Chinese companies. While this policy pressure presents certain challenges for Chinese companies, it also objectively drives them to further expand into European, Asian, and other international markets, enhancing their independent R&D and global collaboration capabilities. In the long run, the core of Sino-US biopharmaceutical competition remains innovation.

 China possesses a continuously expanding pool of scientific research talent, vast clinical resources, and a complete industrial chain system; these advantages are gradually translating into innovative achievements. Rather than artificially erecting barriers to restrict competition, it is better to promote the common development of the global pharmaceutical industry through open cooperation and fair competition. The US’s intensified restrictions on Chinese biopharmaceuticals reflect both national security considerations and its concern and pressure regarding China’s rapidly improving innovation capabilities. For China, external restrictions cannot change the long-term trend of its industrial development; more importantly, it should continue to enhance its independent innovation capabilities, improve its industrial chain layout, and participate in global biopharmaceutical cooperation in a more open manner.