(Oct 16): China is looking to tighten biotechnology exports, but will leave the door open for licensing deals with foreign drugmakers that have underpinned its position as a growing pharmaceutical powerhouse.
Beijing is proposing to add five biomedical technologies to its export-control list, according to a statement from the Ministry of Commerce. The draft proposal, released Friday, includes two types of cutting-edge medical technology platforms to treat diseases at a genetic level. But the list clarifies that restrictions don’t apply to licensing, partnerships and contract research services involving these technologies.
Multinational pharmaceutical companies are increasingly rushing to secure global licensing deals for experimental drugs developed by Chinese companies. There were 81 licensing deals worth up to US$110 billion (RM449 billion) in the first half of 2026 — on track to surpass last year’s record, according to government statistics.
Allowing licensing deals will provide some relief for the pharmaceutical industry globally. US and European firms say China’s deep pipeline of drug candidates means more innovative drugs with big sales potential. For Chinese drugmakers, the deals offer cash and international recognition — crucial to China’s goal of becoming a global leader in biomedical research.
The growing frequency and prominence of the collaborations have become a source of tension between the US and China in recent years. Some US lawmakers and investors have called for more restrictions on such deals to protect the American biotech industry.
The US Treasury Department is expected to release new regulations this year that could subject biotech licensing deals to the same outbound investment reviews as semiconductors and artificial intelligence systems.
China’s proposed export controls on ownership transfer focus on small interfering RNA molecules that can silence disease-causing genes, as well as cell and gene therapies that have the potential to treat conditions from cancer to rare disease. The restrictions also cover research and technologies related to disease-causing microorganisms.
In addition to the biomedical sector, China outlined plans to control exports in artificial intelligence and solar energy technologies.
Uploaded by Chng Shear Lane