A new US law intended primarily to curb Chinese investment is threatening the US biotechnology industry and the jobs and health benefits it brings. After passing Congress 400 to 2, the updated version of this little-known law, administered by a government committee called CFIUS, immediately triggered layoffs and reduced international fund flows into biotech companies.
Because of its overly broad implementation and lack of an appeal mechanism, CFIUS is not only drastically reducing Chinese investment into US biotech. It is also threatening our country’s drug discovery engine. If it continues to be applied indiscriminately against all non-US investment, Chinese or non-Chinese, with no route of appeal, CFIUS risks costing further jobs, hurting innovation and downgrading the United States as an innovator country.
