The United States is investigating Chinese pharmaceutical company WuXi AppTec for allegedly transferring data from American customers to the Beijing regime, putting the country’s national security at risk, Washington intelligence sources told the agency Reuters.
The White House is concerned that certain Chinese companies are developing biotechnology that could be used by the Chinese military.
The information was shared with the Senate last month as lawmakers prepare a biotech security bill targeting WuXi AppTec and other Beijing-based companies, according to the intelligence sources, who provided the details on condition of anonymity.
WuXi AppTec operates in the area of research, development and manufacturing of pharmaceutical raw materials and medicines. Its clients include large pharmaceutical companies and small biotechnology companies.
Last month, the Office of the Director of National Intelligence warned the White House about Beijing’s scientific and technological development through intellectual property theft and other means to gain “economic and military advantages.”
In response to the allegations, a spokesperson for WuXi AppTec stated that the pharmaceutical company “respects and fully complies with the requirements of U.S. federal and state authorities.”
“We are not aware of any unauthorized transfer by WuXi AppTec of any US customer’s data or intellectual property to China. Protecting our customers’ information is of utmost importance to us and we store it in accordance with your instructions.”
The US is the main revenue generator for Wuxi. Last year, according to company data, more than two thirds of the amounts raised came from the country. Between 2018 and 2023, the company’s revenue more than quadrupled, reaching US$5.6 billion (R$28 billion).
China’s embassy in Washington also weighed in, saying Congress’ claims that WuXi AppTec posed a threat to national security were “unjustified.”
“If anyone believes that WuXi AppTec or its related companies have violated laws regarding intellectual property rights, they must provide convincing evidence to support their claims,” he stated.