A bipartisan commission has issued a stark warning that the United States could forfeit its historical advantage in biotechnology to China without immediate government intervention and substantial new funding commitments.
In a report released Tuesday, the National Security Commission on Emerging Biotechnology called for federal investment of at least $15 billion over the next five years to bolster America’s biotech capabilities. The commission, established through defense legislation in 2022, also advocated for creating a dedicated National
Biotechnology Coordination Office within the White House to develop cohesive strategy.
The 11-member commission, which includes representatives from both political parties, spent two years analyzing the competitive landscape between the U.S. and other nations, with particular focus on China. Their findings suggest China’s two-decade strategic prioritization of biotechnology has positioned it to potentially overtake American leadership in the field.
“The next three years will be critical for the United States to take decisive action to maintain competitiveness,” the commission emphasized in its report. “Failure to do so could result in an irreversible decline in America’s biotech position.”
Senator Todd Young, an Indiana Republican who chairs the commission, framed the issue as central to U.S.-China competition that will shape the coming century. The report specifically highlighted concerns about Chinese companies like WuXi AppTec, a contract manufacturer that was the subject of proposed restrictive legislation last year.
The commission cautioned against treating Chinese state-affiliated biotech firms as regular market competitors, even if that means choosing more expensive alternatives. Their recommendations include establishing an “Independence Investment Fund” to support biotech startups and developing a network of pre-commercial biomanufacturing facilities.
The report also suggested implementing rules on outbound investment to prevent U.S. capital from supporting Chinese development of
biotechnologies that could pose national security risks. Such measures could potentially affect U.S. companies’ ability to license
experimental drugs from Chinese firms.
However, the commission’s calls for increased investment come at a challenging time. The Trump administration has recently ordered significant cuts to research funding and extensive layoffs across regulatory agencies, including the Food and Drug Administration. Additionally, the administration’s visa restrictions and scrutiny of universities have created tension with the commission’s recommendation to leverage America’s ability to attract international scientific talent.
The biotech sector is also closely monitoring potential
pharmaceutical-specific tariffs under the Trump administration. While pharmaceuticals were excluded from new duties announced on April 2, future import taxes could be used to encourage domestic
biomanufacturing investment.
Trump addressed this issue during an April 2 White House speech, highlighting recent U.S. manufacturing investments by pharmaceutical companies like Eli Lilly and Johnson & Johnson. “The pharmaceutical companies are going to come roaring back,” he stated.
The commission’s work follows in the footsteps of an earlier commission whose recommendations helped shape the 2022 CHIPS Act focused on semiconductor manufacturing and research. Their latest findings and proposals are intended to provide a foundation for new legislation to strengthen America’s position in the increasingly critical biotech sector.
As China rapidly advances its capabilities through government industrial policies and swift adoption of artificial intelligence tools, the commission emphasizes that maintaining U.S. biotech leadership is vital to national security and economic competitiveness in the decades ahead.
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