The next tech war? Why biotech may become a new US-China battleground
Topic: defense & securityRegion: AsiaUpdated: i1 outletsSources: 1Spectrum: Left Only⏱ 4 min read⚠ 3d+ old
Story Summary
SITUATION
China's biotech industry is rapidly advancing, prompting fears in the US and calls for tighter controls. The US is increasingly wary of its dependence on China's supply chains amid China's record $60 billion in cross-border licensing deals in early 2026.
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KEY FACTS
- China’s biotech industry is rapidly moving up the value chain, prompting fears in the US and calls for tighter controls.
- Biotech in the world’s second-largest economy has long been viewed as a predominantly low-cost manufacturing base with opportunities arising from its vast domestic market.
- But years of sustained investment, cost advantages and faster development timelines are helping China emerge as a source of innovative medication.
- So far this year, Chinese firms had accounted for about 69 per cent of the total value of global biotech deal-making, said Cui Cui, head of healthcare research for Asia at Jefferies.
- The sector’s rapid ascent has heightened concerns in Washington, where policymakers are already wary of growing dependence on China’s supply chains.
HISTORICAL CONTEXT
The immediate backdrop to the current concerns over China's biotech industry is the ongoing technological rivalry between the United States and China, which has intensified significantly since the early 2020s.
In 2025, the US government began implementing stricter export controls on advanced technologies, particularly those related to semiconductors and artificial intelligence, in response to fears that these technologies could enhance China's military capabilities.
Brief
China's rapid advancement in biotechnology is raising alarms in the United States, as the country increasingly recognizes the strategic importance of this sector in the ongoing geopolitical rivalry.
In the first quarter of 2026, Chinese biotech companies secured a record $60 billion in cross-border licensing deals, accounting for approximately 69 percent of the total value of global biotech deal-making. This shift marks a significant transition for China's biotech industry, which has historically been viewed as a low-cost manufacturing base.
However, years of sustained investment, cost advantages, and accelerated development timelines have enabled China to emerge as a source of innovative medications.
American pharmaceutical firms are now turning to China's burgeoning biotech sector for new drug candidates, further complicating the landscape as US policymakers express concerns over dependence on Chinese supply chains.
The growing interdependence between the two nations in this field could lead to heightened tensions, as the US considers tighter controls to safeguard its interests. The implications of this biotech race extend beyond mere competition; they touch on national security, economic stability, and the future of healthcare innovation.
As both nations navigate this complex terrain, the stakes for global health and technological leadership continue to rise.
Sources
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