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, according to Washington intelligence sources. The White House has expressed concerns that certain Chinese companies are developing biotechnology that could be used by the Chinese military.
The information about WuXi AppTec was shared with the Senate last month as lawmakers prepare a biotech security bill targeting the company and other Beijing-based companies. The intelligence sources provided these details on condition of anonymity. WuXi AppTec operates in the research, development, and manufacturing of pharmaceutical raw materials and medicines, serving clients that include large pharmaceutical companies and small biotechnology firms.
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 company complies with U.S. federal and state requirements and respects its customers’ information, storing it according to their instructions.
WuXi generates a majority of its revenue from the US market. Between 2018 and 2023, the company’s revenue more than quadrupled, reaching US$5.6 billion. China’s embassy in Washington has dismissed claims that WuXi AppTec poses a threat to national security as unjustified and called for evidence to support such allegations.