It is worth noting that the pharmaceutical sector’s recent source of novel molecules may as well be coming under threat. Apparently, it is the White House which is reportedly preparing an executive order that is going to place restrictions on drugs brought-in to the US from China, which also includes experimental treatments which happen to be invented at Chinese biotechs.
This policy happens to be a part of a draft executive order on Chinese pharma companies that’s obtained by The New York Times, which was the first that went on to report this news. The policies look to be broadly concerned with the tamping down on Chinese biopharma, that as per the newspaper, is indeed fueling fears that China could very soon supplant US-based centers concerning pharma industry such as Boston and San Francisco.
Interestingly, the executive order reportedly happens to have a series of policy proposals which could very well affect the pharmaceutical industry. One would massively go ahead and also scrutinize the licensing deals that have taken place between American and Chinese companies, that by the way have been very common in the last few years since the US firms look out for new sources when it comes to novel molecules.
Notably, all these deals have not been historically subject to certain regulation, however, under the executive order they are sure going to be investigated by the Committee on Foreign Investment in the United States, which happens to be an inter-agency committee that goes on to review the foreign investments in the US.
One more proposed policy happens to be heightening the review of clinical data generated in China by the FDA and also adding regulatory fees to the applications that make use of data generated within China. The fact is that the FDA already needs late-stage clinical data to get generated from the US patients.
Behind the executive order executive order on Chinese pharma companies happens to be a crosscurrent of opposing interests, as per The New York Times. There are some groups, such as tech billionaires Sergey Brin, Peter Thiel as well as the Koch family, that indeed support the idea of cracking down on the Chinese influence on the US. pharmaceuticals due to the fact that they hold investments in certain American startups which might as well struggle due to the headwinds across American pharma industry.
And of course, opposing the order would be the largest pharmaceutical companies on the planet that include the likes of Pfizer as well as AstraZeneca, which have been massively taking-up molecules that are developed by Chinese biotech’s. The pharmaceutical sector went on to spend $48 billion in China in 2025 first half itself, which is over the entirety of 2024. On the other hand, there are concerns regarding the biotech sector’s ceding relationship to China which has already been raised within the Congress and also by the industry.
Yet another force behind this order, as per The New York Times happens to reshoring the US. production of medicines that’s commonly manufactured in China which includes drugs like antibiotics as well as other over-the-counter painkillers such as Tylenol. Once the US manufacturing of those drugs sees a surge, the draft order opines that the government should very go ahead and give those drugs the preference to purchase.
