2024-02-14 07:25:00
U.S. lawmakers have sent letters to multiple government agencies, including the Department of Defense, calling for investigations into Chinese biotech companies WuXi AppTec and WuXi Biologics’ alleged ties to the Chinese military.
Updated February 14, 2024 15:25 CST
U.S. lawmakers have sent letters to multiple government agencies, including the Department of Defense, calling for investigations into Chinese biotech companies WuXi AppTec and Wuxi Biologics for alleged ties to the Chinese military The problem.
In a letter to the U.S. Secretaries of Defense, Commerce and Treasury, the lawmakers said they “strongly urge” the agencies to investigate WuXi AppTec and WuXi Biologics and consider adding them to their respective regulatory lists.
The letter, dated Monday, was written by U.S. Representative Mike Gallagher, chairman of the Select Committee on the Chinese Communist Party, and Congressman Krishnamoor, the committee’s ranking member. Signed by Raja Krishnamoorthi. Senators Gary Peters and Bill Hagerty…
U.S. lawmakers have sent letters to multiple government agencies, including the Department of Defense, calling for investigations into Chinese biotech companies WuXi AppTec and Wuxi Biologics for alleged ties to the Chinese military The problem.
In a letter to the U.S. Secretaries of Defense, Commerce and Treasury, the lawmakers said they “strongly urge” the agencies to investigate WuXi AppTec and WuXi Biologics and consider adding them to their respective regulatory lists.
The letter, dated Monday, was written by U.S. Representative Mike Gallagher, chairman of the Select Committee on the Chinese Communist Party, and Congressman Krishnamoor, the committee’s ranking member. Signed by Raja Krishnamoorthi. Senators Gary Peters and Bill Hagerty also signed the letter.
A WuXi AppTec spokesperson said in a statement to The Wall Street Journal that the company was aware of the letter. WuXi AppTec has always welcomed regulatory oversight of the industry and has successfully passed several past reviews by the U.S. government, the spokesman said.
The spokesperson added: “But we strongly reject misleading accusations, inaccurate assertions and preemptive actions once morest our company without due process. We believe WuXi AppTec does not pose a national security risk to any country – Another review of our company would come to the same conclusion.”
The company was named in a bill introduced late last month to ban federal contracts with some Chinese biotech entities because of their alleged ties to the People’s Liberation Army.
WuXi AppTec has previously denied any wrongdoing and said the company complies with the laws and regulations of the countries where it operates, including China and the United States.
Monday’s letter said biotechnology is quickly becoming a key component of the U.S.’s technological competition with China and other U.S. adversaries.
“So it is important that the U.S. government uses licensing, sanctions, and related tools to address the risk that any Chinese biotech company threatens U.S. national security by violating human rights or advancing the capabilities of the People’s Liberation Army,” the letter said.
Shares of both WuXi AppTec and WuXi Biologics have fallen sharply since the U.S. bill was introduced.
Since January 26, WuXi AppTec has fallen by more than 26%, and WuXi Biologics’ stock price has fallen by more than 29%.
Stock markets in China and Hong Kong were closed on public holidays.
(update completed)
(Correction statement: The first paragraph of an earlier version of this article incorrectly described the relationship between WuXi Biologics and WuXi AppTech. The two should be sister companies. February 13, 2024)
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