U.S.-China Trade Tensions Threaten Biotech Cash Surge
- New rules and reports show White House is watching money flows
- Despite new detente, wariness in Washington over investments
Photographer: Martin Divisek/Bloomberg
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Increasing wariness in Washington over China’s investments in U.S. biotechnology companies may cool a hot source of capital for medical startups.
Chinese investors have been a mainstay of recent fundraising by private biotechnology firms. At least one Chinese investor has participated in 41 U.S. biotech financing deals valued at a total of $2.6 billion this year, according to Pitchbook. Beijing wants to kickstart its domestic drug industry as it emphasizes high-tech fields over the manufacturing and construction that made China a global economic behemoth.