The U.S. House of Representatives successfully passed a bill aimed at restricting the country's business with Chinese firms WuXi App Tec and BGI as well as other biotech companies, citing national security as grounds for its passage. China was quick to condemn the move Tuesday.
It was the first floor vote for the Biosecure Act and it garnered a strong "in favor" vote of 306 to 81, meeting the required two-thirds vote from House members. The bill now needs to be approved by the Senate before it can be sent to President Joe Biden, who will then sign it into law.
The Biosecure Act would prohibit the U.S. from entering into contracts with the targeted firms, along with those who support them, according to Reuters. Those who support the bill argued that the move is necessary to safeguard U.S. citizens' personal health, genetic information, and pharmaceutical supply chains in the country.
During the debate on the bill held Monday, Rep. John Moolenaar, the chair of the House Select Committee on China, and Rep. Raja Krishnamoorthi, the ranking member of the House Select Committee on China, argued for its passage.
On the other hand, Rep. Jim McGovern, a critic of China's human rights abuses, raised concerns about the bill. He said that he was unclear on how the two companies were selected.
WuXi Biologics, one of the companies mentioned in the bill, is building a facility in Massachusetts, the district that McGovern represents. According to a Bloomberg report, there was last-ditch opposition from a number of lobbyists to stop the bill, but it did not succeed.
In response to the vote, the Chinese foreign ministry denounced the bill as "discriminatory" and urged Washington to stop making "excuses" to suppress Chinese enterprises.
While WuXi Biologics did not respond to the U.S. move, WuXi AppTec expressed its disappointment, claiming that it "pre-emptively and unjustifiably designates our company without due process."
Following the move, shares of WuXi AppTech and WuXi Biologics fell, with the former dropping 11% and the latter 9% on Tuesday.
The companies targeted in the bill maintain that the legislation would only limit competition and is based on misleading allegations. They further emphasize that they pose no threat to U.S. national security.
