China is emerging as a global biotechnology innovation hub, but its growing influence is facing political and regulatory scrutiny from the US. The US policy response reflects concerns around its competitiveness and technological leadership, rather than the country’s scientific capability alone, says GlobalData, a leading intelligence and productivity platform.
China’s scientific progress was on display at ASCO 2026, which took place in Chicago, US, from May 29 to June 2, where Akeso’s ivonescimab became the first therapy developed from a China-only clinical trial to be presented in a plenary session at the world’s leading oncology congress. The bispecific antibody demonstrated a significant reduction in the risk of death in squamous non-small cell lung cancer patients, highlighting the quality and global credibility of China’s clinical research.
Around the same time, the US Department of Defense added contract research, development, and manufacturing organization (CRDMO) WuXi AppTec to its 2026 Section 1260H list of “Chinese military companies” on 8 June. This could affect the company’s eligibility for future US government contracts under the BIOSECURE Act. WuXi AppTec has rejected the designation, stating it is “mistaken and baseless,” while pursuing legal action against the decision. While WuXi AppTec emphasized that there will be no immediate operational disruption, the company has taken steps to reduce any future impact, including selling selected US- and UK-based assets.
Edita Hamzic, Healthcare Analyst at GlobalData, comments: “China has moved beyond its traditional role as a manufacturing base for generic medicines and is now developing globally competitive advanced therapies. The country’s latest biotechnology success is strategically important, with implications extending beyond healthcare innovation to include pharmaceutical supply-chain resilience, economic competitiveness, and national security.”
GlobalData’s Emerging Market Outsourcing Report reveals that cross-border partnerships remain strong, despite increasing political scrutiny. Recent multibillion-dollar licensing agreements between US pharmaceutical companies and Chinese biotech firms demonstrate continued demand for innovative assets.
Additionally, Chinese biopharma companies are expanding advanced manufacturing capabilities across high-potency APIs, peptides, and small molecules. Crystal Pharmatech Co Ltd launched an OEB4/OEB5 high-potency lab in Suzhou to support complex API development, while Proton Pharma Pvt Ltd partnered with Hubei Jianxiang Bioscience to build an integrated peptide development and manufacturing platform. Meanwhile, Zhejiang Jiuzhou Pharmaceutical Co Ltd is investing in GMP small-molecule capacity to strengthen supply chain resilience and production flexibility.
Hamzic concludes: “Recent developments highlight how geopolitical tensions affect the biotechnology sector, despite continued scientific progress and international collaboration. While geopolitical uncertainty is changing how US-China innovation partnerships are structured, it is unlikely that China’s long-term trajectory as one of the world’s leading sources of biopharmaceutical innovation will be affected.”
The Emerging Market Outsourcing Report is a quarterly analysis of news and trends affecting contract manufacturing organizations in emerging pharma markets such as China, India, Latin America, the Middle East, and Eastern Europe. The report details contract service agreements, manufacturing inspections, and M&A and financing announcements, and covers areas such as API and dose manufacturing, analytical services, and packaging.
For more insights and detailed analysis, access the full Q2 Emerging Market Outsourcing report.
