# Treasury Proposes China Biotech Investment Limits

The U.S. Department of the Treasury has proposed restrictions on U.S. investment in parts of China’s biotechnology sector, including certain biological materials, biomanufacturing, biological-design technologies, and automated scientific discovery tools. Treasury is expected to finalize the proposal by March, although the signal does not specify the year. The proposal excludes licensing deals, but its treatment of co-development and co-marketing arrangements remains unclear, creating potential uncertainty for pharmaceutical companies and investors with China-linked programs; it does not establish a government procurement restriction.

- Procurement teams and contractors with biotech suppliers or research partners in China can map exposure across the identified technologies and activities when assessing supply-chain and investment risks.
- Companies involved in licensing, co-development, or co-marketing should distinguish licensing transactions, which the proposal does not address, from arrangements whose treatment remains unresolved.
- **Why this matters:** The final rule could affect how pharmaceutical companies and investors structure China-linked biotech relationships, with potential implications for supplier selection and continuity of research or manufacturing partnerships.

**Jurisdictions:** federal
**Industries:** Healthcare
**Topics:** Regulatory Compliance
**Published:** October 23, 2026

### Government Entities
- U.S. Department of the Treasury (Treasury)
- Chinese government

### Vendors
- Pfizer (Participant in licensing deals with Chinese drug developers)
- Bristol Myers Squibb (Participant in licensing deals with Chinese drug developers)
- Roche (Participant in licensing deals with Chinese drug developers)

### Key Quotes
> As Treasury considers comments on the proposed rule, we need to ensure that we do not have an overly broad approach that would create uncertainty for innovators and investors, and that may unintentionally risk weakening U.S. biotech competitiveness.
> — John Crowley, Chief Executive Officer of the Biotechnology Innovation Organization

### Sources
- [Proposed rules target US-China biotech ties - POLITICO](https://www.politico.com/newsletters/prescription-pulse/2026/10/23/proposed-rules-target-us-china-biotech-ties-01132547) - Politico