US Bill Targets Chinese Biotech Companies Wuxi AppTec and Wuxi Biologics
Impact of US Legislation on Chinese Biotech
The US House of Representatives has passed a significant bill targeting Chinese biotech companies, including Wuxi AppTec and Wuxi Biologics. This legislation aims to curb business ties with specific firms in an effort to safeguard American health data and support local manufacturing.
Stock Market Reactions
- Wuxi AppTec's share price plummeted 10% to HK$32.20.
- Wuxi Biologics saw a decrease of 3.9%, landing at HK$10.90.
- The Hang Seng Index noted a modest increase of 0.2% during this period.
Legislative Journey
After passing the House with a vote of 306 to 81, the bill is pending Senate approval and may reach President Joe Biden for signature. If enacted, it will prohibit federal contracts with the targeted companies and their US subsidiaries.
Company Responses
- Both companies deny allegations of posing a security threat.
- Wuxi Biologics plans to monitor the legislative process closely.
As tensions escalate between the USA and China, these Chinese biotech companies find themselves at a precarious juncture, spurring a cautious approach from American businesses.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.