Biotech battle breaks out between China and the US
Europe also warns of falling into the critical minerals supply chain trap amid heightened tensions
Biotech risks becoming the “latest battleground” between China and the United States and Europe. Already, fears are growing that the massive global pharmaceutical sector is poised to suffer the same fate as renewable energy, electric vehicles, and cutting-edge tech.
The plan involves weaponizing “deep integration” into China’s supply chains, backed by massive funding from the Communist Party state. It follows a well-thumbed playbook, which has alarmed Washington and triggered national security red flags.
Last week, Pfizer announced it had become the latest American drug giant to link up with a Chinese biotech company. “They plan to pay US$650 million to Innovent Biologics for several cancer drugs,” the Financial Times reported.
“The deal is worth up to $10.5 billion to Innovent if commercial and regulatory targets are hit. The [move also] adds to increasing anxiety in the US about the pharmaceutical sector’s shopping spree [in China],” the FT stressed.
High on drugs:
- Pfizer’s decision mirrors a similar strategic approach by AbbVie, Bristol Myers Squibb, and Eli Lilly in courting Chinese companies.
- Along with European pharma brands AstraZeneca, Novartis, and Sanofi, they have shelled out $2.5 billion for China-branded drugs, according to Evaluate, a research group.
China wants to be the world’s biotech superpower.
China Talk
Delve deeper: But it is not just an American problem. Earlier this month, the European Union announced it would “boost local production of medicines.” State aid is on the table as part of the “Made in EU” strategy to counter Beijing’s colossal “Made in China” blueprint.
Between the lines: “We tried to retain the industry in Europe. I think this is extremely important,” Tomislav Sokol, the European Parliament’s chief negotiator, said, as reported by Politico, the online geopolitical media group.
Big picture: The EU stance is echoed in the views expressed by the American Chamber of Commerce. It warned that time was running out to counteract Beijing’s drive to drag the pharmaceutical industry into the row over global supply chains.
Bottom line: “China wants to be the world’s biotech superpower. The US [and Europe are] racing to maintain a competitive edge in the face of Chinese pressure. The threat of a cutoff of basic medicines has policymakers searching for options,” China Talk reported.
China Factor comment: It appears that the drugs war has only just begun. The lessons from Beijing’s grip on critical minerals that fuel today’s high-tech society must not happen again. Insanity must not be repeated. After all, there is no cure for that.