The wide-ranging geopolitical rivalry between Beijing and Washington could soon expand into biotechnology, raising the prospect of fresh tensions even as American pharmaceutical firms have turned to China’s fast-growing industry for new drug candidates. Biotech in the world’s second-largest economy has long been viewed as a predominantly low-cost manufacturing base with opportunities arising from its vast domestic market. But years of sustained investment, cost advantages and faster development timelines are helping China emerge as a source of innovative medication. Chinese biotech companies struck cross-border licensing deals worth a record US$60 billion in the first quarter of 2026, according to data from the National Medical Products Administration, a medical supervisory body under the State Council.

Full report : China’s biotech industry is rapidly moving up the value chain, prompting fears in the US and calls for tighter controls.