BIOSECURE Act left out of US defense budget bill, provides reprieve to Chinese biotechs

Five Chinese biotechnology companies have avoided being barred from U.S.-funded research and contracts after congressional negotiators on a key defense bill excluded the proposed legislation on Saturday from the military spending package.

The BIOSECURE Act, which aims to ban certain China-based biotech firms from accessing U.S. federal funding mechanisms, previously garnered strong bipartisan support in Congress. In September, the U.S. House of Representatives overwhelmingly passed the legislation by a bipartisan vote of 306 to 81.

However, Democratic leaders over the weekend — including Reps. Jim McGovern and Jamie Raskin — opposed the measure citing concerns about naming specific companies without due process. Lawmakers debated amendments to the legislation, such as adding an executive review process, to address potential legal challenges. However, these changes failed to gain traction as Congress heads into the holiday recess, likely missing the chance to be passed this year.

The BIOSECURE Act targets contract manufacturers BGI Group, its spinoffs MGI and Complete Genomics, as well as WuXi AppTec and WuXi Biologics. Proponents of the bill contend it is vital to safeguard U.S. national security from Chinese “companies of concern” and prevent potential misuse of biological data by Beijing.

Critics, including Chinese government officials, have condemned the measure as an overreach, claiming it unfairly targets foreign businesses under the guise of national security. With the BIOSECURE Act omitted from the defense budget bill, supporters now aim to attach a modified version of the proposed legislation to a year-end government funding package.