US bill to restrict business with China's WuXi AppTec, BGI passes House

By Karen Freifeld

(Reuters) - The U.S. House of Representatives on Monday passed a bill that aims to restrict 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 prohibit federal contracts with targeted firms and those that do business with them.

Supporters argue the measure is necessary to protect Americans' personal health and genetic information as well as U.S. pharmaceutical supply chains.

The bill passed by 306 to 81, easily topping the two-thirds majority necessary under the process.

The legislation must pass the U.S. Senate before it can be sent to President Joe Biden to be signed into law.

In debate on the House floor earlier on Monday, Representatives John Moolenaar and Raja Krishnamoorthi, the chair and ranking member of the House Select Committee on China, respectively, were among those who argued in favor of the legislation.

Representative Jim McGovern, a critic of China's human right abuses, opposed the bill, arguing that he could not get a clear answer for how the companies were identified. WuXi Biologics (HK:2269 ), which is targeted, is constructing a facility in his district in Massachusetts.

The U.S. Senate's 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 are MGI and its California-based subsidiary Complete Genomics.

The targeted companies say the measure is based on false and misleading allegations and that it would limit competition. They deny posing any threat to U.S. national security and each say they should not be included in the bill.

Source: Investing.com