US Treasury proposes rules tightening American investment in Chinese biotech
The US Treasury just proposed rules to tighten how Americans can invest in Chinese biotech firms, aiming to slow China's progress in sensitive tech areas.
If these go through, US investors would need to report certain deals, and some investments could be banned altogether.
Chinese biotech stocks fall after proposal
Chinese biotech stocks have already dropped after the news, with companies like Genscript and CSPC Pharmaceutical feeling the impact.
The rules are stricter than previous ones and even target brain-computer interface technology.
Still, licensing deals are allowed, so US companies can keep using innovative Chinese treatments for now.
Meanwhile, China is also looking to tighten its own controls on exporting biomedical technology, showing just how important this field has become globally.