US bill to restrict business with China’s WuXi AppTec, BGI passes House By Reuters

Written by Karen Freifeld

(Reuters) – The U.S. House of Representatives on Monday passed a bill aimed at restricting 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 have barred government contracts with targeted firms and those doing business with them.

Supporters argue that the move is necessary to protect the personal health and genetic information of Americans and the US pharmaceutical supply chain.

The bill was passed 306 to 81, easily exceeding the two-thirds majority required under the process.

The legislation must pass the US Senate before being sent to President Joe Biden to be signed into law.

In a debate on the House floor early Monday, Representatives John Moolenaar and Raja Krishnamoorthi, the chairman and ranking member of the House Select Committee on China, respectively, were among those who opposed the legislation.

Representative Jim McGovern, who criticizes China’s human rights abuses, opposed the bill, saying he had not received a clear answer on how the companies were identified. WuXi Biologicals (HK:), the target, built a property in his state of Massachusetts.

The US Senate 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.

Other companies named MGI and its California subsidiary Complete Genomics.

The targeted companies say the move is based on false and misleading allegations and will reduce competition. They deny they pose a threat to US national security and each say they should not be included in the bill.