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US bill to restrict business with China's WuXi AppTec, BGI passes House
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US bill to restrict business with China's WuXi AppTec, BGI passes House
Sep 10, 2024 12:20 PM

Sept 9 (Reuters) - The U.S. House of Representatives on

Monday passed a bill that aims to restrict business with China's

WuXi AppTec, BGI and several other biotech companies

on national security grounds.

It was the first floor vote for the Biosecure Act, which

would prohibit federal contracts with targeted firms and those

that do business with them.

Supporters argue the measure is necessary to protect

Americans' personal health and genetic information as well as

U.S. pharmaceutical supply chains.

The bill passed by 306 to 81, easily topping the two-thirds

majority necessary under the process.

The legislation must pass the U.S. Senate before it can be

sent to President Joe Biden to be signed into law.

In debate on the House floor earlier on Monday,

Representatives John Moolenaar and Raja Krishnamoorthi, the

chair and ranking member of the House Select Committee on China,

respectively, were among those who argued in favor of the

legislation.

Representative Jim McGovern, a critic of China's human

rights abuses, opposed the bill, arguing that he could not get a

clear answer for how the companies were identified. WuXi

Biologics ( WXIBF ), which is targeted, is constructing a

facility in his district in Massachusetts.

WuXi Biologics ( WXIBF ) did not immediately respond to a request for

comment.

WuXi AppTec said in a statement it was "disappointed" in the

House vote which it said "pre-emptively and unjustifiably

designates our company without due process."

Hong Kong-listed shares of WuXi AppTec and WuXi

Biologics ( WXIBF ) were down more than 10% and 7% respectively in early

trading on Tuesday.

The U.S. Senate's Homeland Security committee voted in

March to approve a similar bill, but it is unclear if and when

the full Senate will vote on the legislation.

The targeted companies have all maintained the measure is

based on false and misleading allegations and that it would

limit competition. They deny posing any threat to U.S. national

security and each say they should not be included in the bill.

"We are disappointed that the U.S. legislative process is

being used to pick winners and losers," BGI Group said in a

statement that reiterated it posed no national security risk.

Other companies named are China's MGI and its

California-based subsidiary Complete Genomics.

"As we have stressed repeatedly, MGI and Complete Genomics

as equipment vendors, do not have access to, collect, or

maintain the patient genetic data, our customers retain full

control over any data they generate," MGI said in a statement.

A spokesperson from Complete Genomics said that

"geopolitics instead of facts" drove the House passage of the

bill.

"We and many across the pharmaceutical and life sciences

industry are deeply concerned about the legislation's impact on

U.S. leadership in biotechnology innovation, drug development,

and patient care," the spokesperson said.

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