Having invested $4.17 billion in the sector in 2024, Chinese biomanufacturing is poised for “significant” growth next year, according to an announcement from China’s Ministry of Industry and Information Technology.
China announced at a national work conference held in Beijing late last week that biomanufacturing is among several emerging industries in which the country plans to accelerate development in 2025.
As a key strategic industry, biomanufacturing “utilizes biological processes to synthesize or process products” offering “sustainable alternatives to traditional manufacturing methods across various sectors,” according to the announcement, which noted that China’s “rich resources and comprehensive bio-industrial system continue to attract substantial investment.”
The Chinese ministry called out the country’s “rapid advancement in industrial biotechnology” as evidenced by “its leading global position in publications and patent applications across key segments.”
Since 2000, China has made biotechnology a strategic focus in its five-year plans, according to a report by Rockville, Md.-based market research firm BioPlan Associates. “Made in China 2025” is the focus of the 14th Five Year Plan (FYP) for 2021-2025, with aspirations of becoming the world’s leader in biotech — which is seen as a threat to U.S. national security.
In March 2024, the National Security Commission on Emerging Biotechnology (NSCEB) issued a white paper warning that 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.”
Beijing’s latest plans for continued investment in biomanufacturing come amid growing geopolitical tensions between China and the U.S.
Last week, Chinese CDMO WuXi AppTec announced it was selling the U.S. and UK-based operations of WuXi Advanced Therapies, its cell and gene therapy business unit, to New York-headquartered private equity firm Altaris for an undisclosed amount.
WuXi AppTec is among five China-based biotech companies named in the BIOSECURE Act — including WuXi Biologics — which seeks to prevent U.S. federal funds from supporting certain Chinese “companies of concern.” While the legislation was overwhelmingly passed by the House of Representatives in September, it failed to be included in a defense bill this month.
However, this may only be a temporary legislative reprieve given the anti-China sentiment of the incoming Trump administration and Republican-controlled House and Senate.
In May, House lawmakers updated the bill with a grandfather clause that would allow existing contracts with the five named Chinese companies to be maintained until 2032. Still, the BIOSECURE Act has already impacted the biotech industry’s confidence in China-based service providers and prompted efforts to diversify manufacturing partners.
“This provides opportunities for the Chinese CDMOs’ competitors to both acquire sites and to pick up new business,” according to data analytics firm GlobalData, which noted that in a Q3 earnings call in October WuXi AppTec said that WuXi Advanced Therapies had already been impacted as there were “insufficient new business wins due to the proposed U.S. legislation.”