May 15 (Reuters) - U.S. legislation that would restrict

business with China's BGI, WuXi AppTec and certain

other biotech companies on national security grounds will be

voted on by a committee in the House of Representatives on

Wednesday.

If approved by the House Committee on Oversight and

Accountability, the Biosecure Act would still need to be voted

on by the full House and Senate before the president could sign

it into law. The bill would push U.S. pharmaceutical and

healthcare companies to lessen their reliance on Chinese

research and manufacturing.

The U.S. Senate Homeland Security and Governmental Affairs

committee voted in favor of similar legislation in March.

The latest version of the House bill gives U.S. companies

until 2032 to end work with the Chinese firms, news that lifted

shares of potentially impacted Chinese companies in trading in

Hong Kong earlier this week.

The latest draft also adds WuXi Biologics ( WXIBF ) to a

list of company of concern that includes WuXi AppTec, as well as

BGI, MGI and Complete Genomics.

Supporters say the legislation is needed to keep Americans'

health and genetic information from foreign adversaries, who

could weaponize the data. They also say it is dangerous for

China to dominate the biotechnology supply chain.

The targeted companies say the proposed legislation is based

on false and misleading allegations and would limit competition.

They say they do not pose a threat to U.S. national security and

that they should not be included in the bill.

The Biosecure Act would bar federal agencies from

contracting with biotech companies deemed of concern. It also

would prohibit contracts with companies that use those

companies' equipment or services.

In 2023, Wuxi Biologics ( WXIBF ) earned about 47% of its 17 billion

yuan in annual sales from North America and about 18% from

China, according to its annual report.

Two-thirds of WuXi AppTec's revenue came from the U.S.

market in the first nine months of 2023, according to an

investor.

Complete Genomics - another "company of concern" - is a U.S.

founded company, headquartered in San Jose, Calif. It is a

subsidiary of China's MGI, a publicly traded global company.

BGI, a leading provider of genetic sequencing services

around the world, has said the legislation will drive the

company out of the U.S.