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China Biotech Rout Shows Growing Pain From US Decoupling Drive

  • US efforts to boost biotech industry lead to China selloff
  • Traders say bilateral tensions may see more sectors targeted

The latest US effort to reduce reliance on China is striking hard at the Asian nation’s biotech stocks, as investors price in more indications of decoupling between the world’s two biggest economies.   

Following US President Joe Biden’s executive order to bolster domestic bio-manufacturing and cut reliance on foreign companies, bellwether Chinese stocks such as Wuxi Biologics Cayman Inc. and WuXi AppTec Co. tumbled at least 16% Tuesday in Hong Kong.