A bipartisan commission has issued a stark warning about America’s declining competitive position in biotechnology, urging immediate government action to prevent China from overtaking U.S. leadership in this crucial sector.
The National Security Commission on Emerging Biotechnology,
established through defense legislation in 2022, released a
comprehensive report Tuesday highlighting the urgent need for increased federal support and strategic coordination in biotechnology development. The commission, comprising 11 members including representatives from both political parties, recommends a minimum investment of $15 billion over five years to enhance American biotech capabilities.
The report emphasizes China’s rapid advancement in biotechnology, noting that Beijing has prioritized the sector for two decades. Commission chair Senator Todd Young (R-Ind.) framed the situation as a defining competition between the two global powers, suggesting that biotechnology represents the next critical battlefield.
Among the commission’s key recommendations is the creation of a National Biotechnology Coordination Office within the White House to oversee strategic initiatives. The report also calls for the establishment of an Independence Investment Fund to support emerging biotech startups and the development of precommercial bioindustrial manufacturing facilities across the country.
The commission expressed particular concern about Chinese
state-affiliated companies like WuXi AppTec, which was previously targeted by proposed U.S. legislation. The report advocates for treating Chinese state-run enterprises differently from conventional market competitors, even if this approach results in higher costs.
The timing of these recommendations comes during a challenging political climate. The Trump administration has recently mandated significant research funding cuts and extensive layoffs across regulatory agencies, including the Food and Drug Administration. Additionally, current immigration policies affecting student visas and academic institutions appear to conflict with the commission’s emphasis on attracting international scientific talent to maintain U.S. competitiveness.
The biotech sector is also watching closely for potential
pharmaceutical-specific tariffs, though the industry was excluded from President Trump’s latest round of duties announced on April 2. Despite these tensions, Trump has highlighted recent investments by major pharmaceutical companies like Eli Lilly and Johnson & Johnson in U.S. manufacturing facilities as evidence of industry growth.
The commission proposes new outbound investment restrictions to prevent U.S. capital from supporting Chinese biotechnology
developments that could pose national security risks. While these measures could potentially affect U.S. companies’ ability to license experimental drugs from Chinese firms, the report doesn’t explicitly recommend blocking such arrangements.
According to the commission’s analysis, the United States has approximately three years to implement significant changes before potentially falling irreversibly behind China in biotechnology capabilities. The report’s authors draw parallels to the 2022 CHIPS Act, which was influenced by similar commission work and focused on semiconductor manufacturing and research.
The recommendations reflect growing concern about China’s integration of artificial intelligence tools into biotechnology development and the strategic implications of Chinese government involvement in the sector. The commission emphasizes that maintaining U.S. leadership in biotechnology is not merely an economic consideration but a critical national security imperative.
Without swift and substantial government action to strengthen American biotechnology capabilities, the commission warns, the United States risks losing its competitive advantage in a field that will likely shape global power dynamics for generations to come.
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