The United States has launched an investigation into Chinese pharmaceutical company WuXi AppTec for allegedly transferring sensitive data from American customers to the Beijing regime, putting national security at risk, according to Washington intelligence sources. The White House has expressed concerns that certain Chinese companies are developing biotechnology that could be used by the Chinese military.
The Senate was provided with information about WuXi AppTec last month as lawmakers prepare a biotech security bill targeting the company and other Beijing-based companies. The intelligence sources shared these details on condition of anonymity. WuXi AppTec operates in the research, development, and manufacturing of pharmaceutical raw materials and medicines, serving clients that include large pharmaceutical companies and small biotechnology firms.
In response to the allegations, a spokesperson for WuXi AppTec stated that the company complies with U.S. federal and state requirements and respects its customers’ information, storing it according to their instructions. However, China’s embassy in Washington has dismissed claims that WuXi AppTec poses a threat to national security as unjustified and called for evidence to support such allegations.
WuXi generates a majority of its revenue from the US market, with its revenue more than quadrupling between 2018 and 2023, reaching US$5.6 billion. This growth has raised concerns among some in the US government about the potential risks associated with doing business with Chinese companies in the biotech industry.
The Office of the Director of National Intelligence (ODNI) warned the White House about Beijing’s scientific and technological development through intellectual property theft and other means to gain “economic and military advantages.” The ODNI also highlighted how certain Chinese companies have been accused of stealing sensitive technology from American firms.
The investigation into WuXi AppTec is ongoing, but it highlights how tensions between China and the US are continuing to escalate over issues related to trade, technology transfer, and intellectual property theft.
Overall, this incident serves as a reminder of how important it is for businesses operating in highly regulated industries like pharmaceuticals to maintain strict compliance policies when dealing with foreign partners. Failure to do so could result in severe consequences for both businesses themselves as well as national security interests at large.
