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Meet The Chinese Communist Party-Linked Company That’s Developed One-Fourth Of America’s Critical Drugs

Chinese pharmaceutical company Wuxi AppTec has recently been involved in the development of a quarter of the medicines Americans use, according to the New York newspaper, and some lawmakers have suspected the company’s ties to the Chinese government. , times stating that it is a national security threat.

WuXi AppTec is a leading manufacturer of many of the key ingredients for therapeutics manufactured by major U.S. pharmaceutical companies due to its ability to provide low-cost, reliable work in high volumes. according to To the New York Times. Lawmakers say WuXi AppTec poses a potential national security threat due to its access to Americans’ genetic information and intellectual property and is suspected of collaborating with the Chinese Communist Party (CCP) are doing. (Related: Biden’s electric car ‘mandate’ could be a surprise gift to China)

According to the NYT, the company is linked to the People’s Liberation Army of China in a House bill called the BioSecure Act, which notes that WuXi AppTec sponsors military-civilian events and also receives military-civilian fusion funds. Richard Connell, chief operating officer of WuXi AppTec’s U.S. and European operations, confirmed that the company participates in community events, but denied any relationship with the Chinese government or its entities.

According to the New York Times, current legislation moving through Congress to address Wuxi’s heavy involvement in the U.S. pharmaceutical industry has so far been watered down to protect existing contracts and decouple The effectiveness of ring measures is said to be limited. The pharmaceutical industry is also facing difficulties in decoupling as drug shortages continue to reach the highest levels in 20 years.

“Everyone wants to exit Wuxi and China more broadly,” said Peter Kolchinsky, managing partner at RA Capital Management, which has about 200 biotech companies in its portfolio, according to the New York Times. “We are considering it,” he said in an email. “The current bill does not explicitly include such an obligation, but no one wants to be caught unfairly in China if the withdrawal from China accelerates.”

According to the NYT, U.S. authorities have also given millions of dollars worth of tax incentives to Wuxi operations that build research and manufacturing sites in Massachusetts and Delaware.

According to the NYT, the National Counterintelligence and Security Center previously warned about Wuxi’s acquisition of US genomic data company NextCODE, which Wuxi has since separated from its main business. Despite siloing its operations, there is reportedly still overlap with management and signs that the Chinese Communist Party has influence over Wuxi.

The American Society of Health-System Pharmacists reported that there were 323 drug shortages in the United States in the first quarter of 2024, the highest number since 2004.

The Chinese Communist Party has broad discretion to intervene in Chinese companies, possibly giving the Chinese government access to information about Americans who use services provided by the companies. Several companies have been accused of ties to the Chinese Communist Party, including Goshon, a California-based subsidiary of Chinese battery maker Goshon High-Tech, and possibly in Michigan and Illinois. The company is planning to build an electric vehicle battery factory in . It receives taxpayer funds.

WuXi AppTec did not immediately respond to a request for comment from the Daily Caller News Foundation.

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