Reps. John Moolenaar, R-Mich, Chairman of the Select Committee on China, and Debbie Dingell, D-Mich, are sponsoring the legislation, dubbed the Biotech Investment National Security Act (BINSA). The bill would amend the Comprehensive Outbound Investment National Security (COINS) Act passed in 2025—which restricts investment in certain sensitive technologies—by adding biotechnology to the list.

Under the new proposal, licensing deals, joint ventures and equity investments in China could be subject to both Treasury and Defense Department reviews. The legislation covers pharmaceutical development, biologicals manufacturing and clinical research and development, while excluding agricultural biotechnology, industrial fermentation and basic academic research.

Dealmaking surge sparks concern
China is emerging as a global biotech leader, attracting significant investment and partnerships from multinational pharmaceutical companies [1]. The country's cost advantages and more adaptive regulatory framework have made it an increasingly appealing hub for novel drug discovery and development [2].

Cross-border licensing transactions reached US$136 billion in 2025, up from less than US$5 billion in 2020, according to the two lawmakers. That trend has sparked concerns about the ability of US biotechnology companies to compete and the potential transfer of critical technological know-how that could endanger national security interests.

Moolenaar and Dingell proposed their bill after Pfizer and Bristol Myers Squibb each announced transformative agreements with Chinese partners. Bristol Myers Squibb is joining forces with China's Hengrui Pharma in a deal worth up to US$15.2 billion, while Pfizer struck a US$10.5 billion cancer deal with Innovent Biologics. 

Moolenaar publicly called out both deals as ‘dangerous’ and a potential threat to the future of American pharmaceutical production. The bill aims to limit the offshoring of the biotech industry, with Moolenaar arguing that failing to act would ‘’hand Chinese companies another chokehold over our economy, and hollow out our nation's research infrastructure’.

Building on earlier legislation
BINSA comes just over six months after Congress signed the BIOSECURE Act into law. While the BIOSECURE Act limits Chinese biotechs and manufacturers from accessing US funding and curbs collaborations with domestic pharma companies using federal funds, BINSA would extend scrutiny to private-sector commercial transactions.

The proposal follows increasing scrutiny of the biotech industry in the context of the COINS Act. In February 2026, Rep. Brian Mast, R-Fla, Chair of the House Foreign Affairs Committee, urged Treasury Secretary Scott Bessent to add biotechnology to the implementation of the COINS Act.

What's Next
If enacted, the legislation would give lawmakers the right to monitor and restrict American companies from signing certain deals with Chinese entities. Moolenaar emphasized the need for parity, stating thatpharmaceutical companies' transactions with China should face the same scrutiny as investments in Chinese technology sectors.

The bill has been formally introduced in the House. Critics, however, argue that restricting access to medicines sourced from China could ultimately harm US patients and that the priority should be streamlining domestic clinical trial processes to revitalize the American biopharma ecosystem.

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References
1. GaBI Online - Generics and Biosimilars Initiative. Biosimilars thrive as China’s biotech industry gains momentum [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2026 Jun 22]. Available from: www.gabionline.net/pharma-news/biosimilars-thrive-as-china-s-biotech-industry-gains-momentum
2. GaBI Online - Generics and Biosimilars Initiative. Chinese biosimilars go global: growth, partnerships, and challenges [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2026 Jun 22]. Available from: www.gabionline.net/biosimilars/general/chinese-biosimilars-go-global-growth-partnerships-and-challenges

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