US weighs allowing most pharma licensing deals with China
 |
Medical ampoule and vial. Illustrative image |
NEW YORK — September 18, 2026
The US Treasury Department is developing rules that would likely allow American pharmaceutical companies to continue most licensing deals involving drugs developed in China, according to three people briefed on the process.
The proposed framework would focus restrictions on areas considered more sensitive, including pathogens and biotechnology that could potentially be used as weapons. The rules have not been finalized and could change, particularly if President Donald Trump becomes directly involved in the decision.
The approach would allow US drugmakers to invest in promising medicines being developed by Chinese companies while avoiding transactions considered to pose specific national-security risks. It would also be less restrictive than measures sought by some US lawmakers and biotechnology companies.
The rules could permit billions of dollars in deals that give American companies access to Chinese drug candidates while providing Chinese biotechnology firms with additional capital. Licensing transactions involving Chinese biotechnology companies were worth about $115 billion globally last year, according to GlobalData.
The possible rules come as economic competition between Washington and Beijing has expanded beyond traditional areas such as manufacturing into technology, semiconductors, electric vehicles and biotechnology.
US pharmaceutical companies have urged the administration not to impose broad restrictions on deals with Chinese drug developers. Major drugmakers, including Pfizer, have held meetings with administration officials in recent months to argue that such restrictions could limit American access to a growing source of new medicines.
Pfizer CEO Albert Bourla said he had discussed China and national-security concerns with Treasury Secretary Scott Bessent, Secretary of State Marco Rubio and officials at the Department of Health and Human Services. He has argued that licensing medicines from Chinese companies does not by itself create a national-security threat.
Nearly half of US deals to license drugs from overseas companies in 2025 involved Chinese firms, according to GlobalData, with the trend continuing into 2026. Bristol Myers Squibb signed a partnership with Jiangsu Hengrui Pharma worth as much as $15.2 billion this year, while Pfizer announced a collaboration with Innovent Biologics worth up to $10.5 billion covering 12 cancer-treatment programs.
Not all companies or lawmakers support a lighter approach. Some smaller and midsize biotechnology companies argue that continued US investment in Chinese drug development could create a long-term dependence on China for innovative medicines and weaken the US and European biotechnology industries.
Jason Kelly, CEO of Ginkgo Bioworks, has raised these concerns with Treasury officials. He said continued reliance on Chinese companies for innovative drugs could create a strategic dependency similar to concerns raised in other industries.
Several lawmakers have also called for tighter restrictions. Republican Representative John Moolenaar, who chairs the House Select Committee on the Chinese Communist Party, has urged Treasury to apply a 2025 national-security law restricting some US investment abroad to pharmaceutical transactions.
Moolenaar and Democratic Representative Debbie Dingell are also backing legislation that would increase Treasury oversight of biotechnology investments, licensing agreements and joint ventures involving Chinese companies. They argue that US capital and partnerships could help China expand its position in biotechnology.
Other lawmakers oppose broad restrictions. Democratic Representative Jake Auchincloss, whose Massachusetts district includes many life-sciences companies, has argued that limiting US spending on Chinese biotechnology would not prevent China's industry from advancing.
Chinese President Xi Jinping is expected to meet Trump in the United States next week. The people briefed on the Treasury process said the department is unlikely to announce new pharmaceutical investment rules before that meeting.
Treasury and White House officials declined to comment. The proposed framework remains under development and could be revised before any final rules are issued.
