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US Risks Losing Biotech Edge to China, Report Warns

A new report urges the U.S. government to prioritize biotechnology through increased funding and strategic policy shifts in order to maintain its competitive edge over China in a sector deemed critical to national security.

The United States could lose its once-dominant position in biotechnology to China unless the federal government acts swiftly with targeted investments and proactive policies, a bipartisan commission warned Tuesday.

At a minimum, the report recommends the U.S. invest at least $15 billion over the next five years to bolster the country’s biotech capabilities. It also calls for the creation of a National Biotechnology Coordination Office within the White House to lead a more strategic and unified approach.

“China is rapidly emerging as a global biotech leader, having made biotechnology a national strategic priority for the past two decades,” the report states. “To remain competitive, the United States must take decisive action within the next three years. Otherwise, we risk falling irreversibly behind.”

The findings come from the National Security Commission on Emerging Biotechnology, established by Congress through the 2022 defense appropriations bill. The 11-member commission—comprising bipartisan lawmakers and experts—has spent the past two years assessing the global biotechnology landscape, with a focus on the U.S.-China rivalry. Its recommendations aim to lay the groundwork for future legislation, similar to how a previous commission helped shape the 2022 CHIPS Act focused on semiconductor innovation.

“The United States is in a high-stakes competition with China that will define the 21st century,” said Senator Todd Young (R-Ind.), the commission’s chair, in a statement accompanying the report. “Biotechnology represents the next front in that competition.”

The commission expressed concern over the rapid growth of China’s biotech industry, attributing its success to aggressive government industrial policies and the early integration of advanced artificial intelligence technologies.

Chinese companies like WuXi AppTec—a major biotech manufacturer—are cited as key players driving China’s ascent. The company was previously targeted in legislation that was ultimately shelved. The report also warns that China’s tight state control over its biotech sector could result in strategic moves intended to undercut U.S. interests.

“We cannot treat Chinese state-backed firms as ordinary market competitors, even if that means relying on more costly alternatives,” the report concludes.