Editor’s (re)View: US investment in biomanufacturing needed amid challenge from China
While the U.S. remains the global leader in biotechnology, China has again upped the ante in its high-stakes strategy to challenge American hegemony. The Chinese government last week unveiled plans to accelerate the development of biomanufacturing in 2025.
China’s Ministry of Industry and Information Technology noted in its announcement that nearly $4.2 billion was invested in its biomanufacturing industry in 2024 and “the country’s rich resources and comprehensive bio-industrial system continue to attract substantial investments.”
The Ministry of Industry and Information Technology went on to say that the “rapid advancement in industrial biotechnology” in China “is evident in its leading global position in publications and patent applications across key segments.”
In 2023, Chinese publications accounted for about 19% of all scientific publications in biological manufacturing, according to the Information Technology & Innovation Foundation (ITIF), a U.S. nonprofit public policy think tank based in Washington, D.C. Further, Chinese publications accounted for 26% of all publications in top-cited journals, “making China first in the world in terms of overall publications and high-impact publications in this field,” ITIF said.
Although China previously developed a “robust manufacturing capacity primarily for small molecule drugs and vaccines,” ITIF warned that the country “is now seeking to become a hub of biotechnology innovation and discovery.”
Among its policy recommendations, ITIF recommended that the U.S. expand incentives for domestic manufacturing to mitigate vulnerabilities in biopharma supply chains and bolster America’s national security.
Policymakers should consider a funding vehicle like the CHIPS and Science Act — signed into law by President Biden in 2022 — which aims to reduce America’s reliance on Asian semiconductors by providing billions of dollars in subsidies to encourage companies to manufacture more chips domestically, according to ITIF.
While acknowledging the differences between the biotech and semiconductor industries, ITIF said the U.S. “should support the passage of legislation similar to the CHIPS Act for the biopharmaceutical industry, including allocating at least $5 billion to states to provide incentives for the establishment of new biomedical production facilities.”
A $5 billion investment would be a good start, given that China last year invested nearly $4.2 billion in its biomanufacturing industry. The bottom line is that the U.S. needs to rethink its overall biotech strategy, which must include investing in domestic manufacturing infrastructure and building supply chain resilience.
A 2024 survey from the Biotechnology Innovation Organization found that 79% of biopharma companies have at least one contract or product with a China-based or China-owned CDMO/CMO. It’s time for policymakers to fund America’s supply chain independence from Chinese contract manufacturers by bolstering U.S. domestic manufacturing capabilities.
The bipartisan National Security Commission on Emerging Biotechnology (NSCEB), which will provide a final report to Congress in 2025, found that U.S. biomanufacturing faces several barriers including “regulatory questions, inefficient biological yields, lack of standardization, and difficult scaling processes.”
Last year, NSCEB warned: “The People’s Republic of China intends to win the age of biology and is making significant investments and shrewd policy decisions with the intent to outpace the United States.” It’s a rivalry that’s not going away. Strengthening U.S. biomanufacturing is critical to maintaining America’s lead in biotech.
