U.S. Investigates Chinese Pharmaceutical Company WuXi AppTec for Alleged Data Transfer to Beijing Regime

The United States is conducting an investigation into Chinese pharmaceutical company WuXi AppTec for allegedly transferring data from American customers to the Beijing regime, which poses a risk to national security, according to Washington intelligence sources cited by Reuters. The White House is particularly concerned about certain Chinese companies developing biotechnology that could be exploited by the Chinese military. This information was relayed to the Senate last month as lawmakers work on a biotech security bill targeting WuXi AppTec and other Beijing-based companies.

Last month, the Office of the Director of National Intelligence alerted the White House about Beijing’s scientific and technological advancements through intellectual property theft in order to gain economic and military advantages. In response to the allegations, a spokesperson for WuXi AppTec stated that the company complies with U.S. federal and state requirements and is not aware of any unauthorized transfers of customer data to China. They emphasized the importance of protecting their customers’ information and storing it according to their instructions. WuXi AppTec relies heavily on the U.S. as its main revenue source, with over two thirds of its revenue coming from the country last year.

The debate around potential risks associated with data transfers and intellectual property theft highlights ongoing concerns about the relationship between Chinese companies and the U.S. in sensitive sectors like biotechnology and pharmaceuticals. The US has been investigating several other Chinese firms like Zoom Video Communications, ByteDance, Huawei Technologies Co., Semiconductor Manufacturing Company (SMIC), China National Chemical Corporation (ChemChina), China Mobile Communications Corporation Limited (China Mobile), China Unicom Limited (China Unicom) for alleged violations of US laws and regulations related to technology transfer restrictions imposed by President Trump’s executive orders in 2018