Biotech Emerges as New US-China Geopolitical Battleground
The geopolitical rivalry between the US and China is expanding into biotechnology, with Chinese biotech firms rapidly advancing up the pharmaceutical value chain. In the first quarter of 2026, Chinese companies struck cross-border licensing deals worth a record US$60 billion, according to the National Medical Products Administration. So far this year, Chinese firms have accounted for about 69% of global biotech deal-making, per Jefferies' Cui Cui. This growth has alarmed US policymakers, including Congressman John Moolenaar, who in a May 21 letter to Treasury Secretary Scott Bessent warned that US capital flowing to Chinese biotech through licensing, joint ventures, and equity investments is fueling China's ascent. The sector's rise mirrors earlier tensions over technology and supply chains, raising the prospect of new trade controls.
Key facts
- China's biotech industry is rapidly moving up the value chain.
- Chinese biotech companies struck cross-border licensing deals worth US$60 billion in Q1 2026.
- Data from the National Medical Products Administration, a body under China's State Council.
- Chinese firms accounted for about 69% of global biotech deal-making in 2026.
- Cui Cui, head of healthcare research for Asia at Jefferies, provided the figure.
- US Congressman John Moolenaar wrote to Treasury Secretary Scott Bessent on May 21.
- Moolenaar warned US capital is fueling China's pharmaceutical ascent.
- The rivalry could lead to fresh tensions and tighter controls.
Entities
Institutions
- National Medical Products Administration
- State Council
- Jefferies
- US Congress
- US Treasury
- ING
- Big Pharma
Locations
- China
- United States
- Washington