The Wrong Way To Compete With China in Biotech

Manual Input  |  Jennifer Crook, Steve A Johnson

The United States government is restricting capital and market access to counter China's expanding biotechnology sector, risking domestic pharmaceutical security. Beijing now controls over 30 percent of global drug development, while the American share has declined to 37 percent. This power shift stems from decades of systematic state subsidies aimed at dominating global active pharmaceutical ingredient manufacturing.

Historical precedents in solar energy and shipbuilding demonstrate that protectionist policies fail, leaving the domestic commercial fleet with only eight new vessels in 2024 compared to the rival's output of over one thousand. Furthermore, cancer therapies developed by these competitors are already securing prominent clinical recognition, with projections indicating such drugs could account for over one-third of Food and Drug Administration approvals by 2040. Instead of building higher walls, Washington must reverse proposed 40 percent cuts to the National Institutes of Health, accelerate clinical trial regulations, and secure supply chains through allied partnerships.

Comment

Modern defence planning now relies heavily on supply chain resilience in critical technologies. Protectionist trade barriers often fail to stimulate domestic manufacturing capabilities. State-funded research and development must anchor any serious industrial strategy. Allied partnerships will ultimately determine the balance of technological power.