BREAKINGVIEWS-Pentagon casts dark cloud over China biotech

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Katrina Hamlin

HONG KONG, June 9 (Reuters Breakingviews) - The Department of Defense has added $43 bln WuXi AppTec to a list of firms believed to have Chinese military connections. This latest move won’t on its own reduce US dependence on the country’s pharma giants, but it’s a warning their access to the $500 bln market is in jeopardy.

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CONTEXT NEWS

The U.S. on June 8 added companies including WuXi AppTec to a list of those it believes are aiding China's military.

Known as the 1260H or CMC list, it does not formally impose sanctions on Chinese firms. But a recent U.S. law severely restricts what the Department of Defense is allowed to do: as of later in June, it will be prohibited from contracting directly with those on the list, and starting next year will not be allowed to buy their products or services from third parties, either.


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