Full Breakdown
US-China Biotech Rivalry Sharpens as China Gains Clinical-Trial Momentum and Washington Responds
6/23/2026, 11:42:36 AM
Survey Shows China Closing Gap in Clinical Development
At BIO 2026, a Cure Innovation Index poll of 117 leaders found China now leads the U.S. in clinical development and supply-chain capability, while the U.S. outperforms in production, capital, commercialization and talent. Eighty-five percent say the U.S. lead will last 10 years or less. The U.S. share of early-stage programs fell to about 37 % in 2024 from 48 % in 2015, while China’s rose to over 32 %. China’s regulator recorded 5,215 trial registrations in 2025, roughly double 2020.
Cross-Border Deal Landscape
Chinese firms struck “Co-Co” deals that combine licensing with joint development. Innovent Biologics and Pfizer announced a $10.5 billion agreement covering 12 oncology programs, sharing profits in the U.S. and Europe. Hengrui Pharma’s partnership with Bristol Myers Squibb is valued up to $15 billion, while RemeGen-AbbVie and CSPC-AstraZeneca total $4.95 billion and $18.5 billion. Out-licensing transactions with Chinese partners reached $60 billion in Q1 2025, about half of the $135.7 billion total biotech deal flow.
U.S. Policy Response
U.S. health officials launched a program to speed clinical-trial capacity, following the Biosecure Act signed by President Donald Trump in 2025, which bars federal contracts with non-U.S. biotech firms. In June 2026, sponsors introduced the Biotech Investment National Security Act (BINSA), amending the 2025 COINS Act to require Treasury and Defense Department review of Chinese biotech investments. Expert Song Ruilin warned policies must respect scientific and market principles.
Criticism and Opposition
Republican Rep. John Moolenaar called recent China-U.S. deals ‘dangerous,’ saying they could give Chinese firms a chokehold on the U.S. economy and hollow out domestic research. Dingell echoed the security concerns. Critics argue that limiting Chinese-sourced medicines may harm patients and that strengthening domestic trial funding would be a more effective solution.
Outlook
Morgan Stanley projects Chinese-origin drugs could make up 35 % of FDA approvals by 2040. BINSA bill now awaits committee action, while the U.S. clinical-trial acceleration program seeks to restore competitive edge. Observers expect more “Co-Co” collaborations as Chinese firms pursue larger roles in worldwide commercialization.
Quotes
- “The U.S. is still leading, but confidence is eroding. Most said they see China as an existential threat.” — Seema Kumar, CEO, Cure Innovation Index
- “Commercialization is America's superpower.” — Seema Kumar, CEO, Cure Innovation Index
- “The collaboration would help accelerate development of the company's early-stage oncology pipeline and expand its presence in overseas markets through joint development and commercialization in the United States and Europe.” — Hui Zhou, Chief R&D Officer (Oncology), Innovent Biologics
- “How to manage innovative-drug BD transactions requires respect for science and market principles. Policies should be introduced prudently.” — Song Ruilin, Chief Expert, China Pharmaceutical Innovation and Research Development Association
