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.