The United States has launched an investigation into Chinese pharmaceutical company WuXi AppTec for allegedly transferring sensitive data from American customers to the Beijing regime, posing a risk to national security. According to sources cited by Reuters, the White House is particularly concerned about Chinese companies developing biotechnology that could be exploited by the military.
Last month, the Office of the Director of National Intelligence alerted the White House about Beijing’s scientific and technological advancements through intellectual property theft in order to gain economic and military advantages. In response to these allegations, a spokesperson for WuXi AppTec stated that the company complies with U.S. federal and state requirements and is not aware of any unauthorized transfers of customer data to China. They emphasized the importance of protecting their customers’ information and storing it according to their instructions.
WuXi AppTec relies heavily on the U.S. as its main revenue source, with over two thirds of its revenue coming from the country last year. However, China’s embassy in Washington rebuked Congress for claiming that WuXi AppTec posed a threat to national security without providing convincing evidence to support their allegations. The debate around potential risks associated with data transfers and intellectual property theft highlights ongoing concerns about the relationship between Chinese companies and the U.S., particularly in sensitive sectors like biotechnology and pharmaceuticals.