The United States is conducting an investigation into Chinese pharmaceutical company WuXi AppTec over allegations that data from American customers was transferred to the Chinese government, posing a national security risk, according to sources cited by Reuters. The White House is particularly concerned about certain Chinese companies developing biotechnology that could be used by the military. This information was shared with the Senate last month as lawmakers work on a biosafety bill targeting VuXi AppTec and other Beijing-based companies.
VuXi AppTec is involved in the research, development, and production of pharmaceutical raw materials and drugs, with clients ranging from large pharmaceutical companies to small biotech firms. In response to the allegations, a spokesperson for VuXi AppTec said the company complies with US federal and state requirements and is not aware of any unauthorized transfer of user data to China. They stressed the importance of protecting their customers’ data and storing it in accordance with their instructions. Despite this, more than two-thirds of VuXi AppTec’s revenue comes from the US last year.
The Office of the Director of National Intelligence warned the White House about Beijing’s scientific and technological advances through intellectual property theft to gain economic and military advantage last month. This prompted a response from VuXi AppTec, who denied any wrongdoing and emphasized their commitment to protecting their customers’ data. However, the Chinese Embassy in Washington rebuked Congress for claiming that VuXi AppTec poses a threat to national security without providing convincing evidence to back up their claims.
The debate over potential risks associated with data transfers and intellectual property theft highlights ongoing concerns about the relationship between Chinese companies and the US in sensitive sectors such as biotechnology and pharmaceuticals. As tensions between the two countries continue to rise, it remains uncertain how this issue will be resolved in the future.