The next tech war? Why biotech may become a new US-China battleground

The wide-ranging geopolitical rivalry between Beijing and Washington could soon expand into biotechnology, raising the prospect of fresh tensions even as American pharmaceutical firms have turned to China’s fast-growing industry for new drug candidates.

Chinese biotech companies struck cross-border licensing deals worth a record US$60 billion in the first quarter of 2026, according to data from the National Medical Products Administration, a medical supervisory body under the State Council.

So far this year, Chinese firms had accounted for about 69 per cent of the total value of global biotech deal-making, said Cui Cui, head of healthcare research for Asia at Jefferies.

The sector’s rapid ascent has heightened concerns in Washington, where policymakers are already wary of growing dependence on China’s supply chains.

“United States capital flowing to Chinese biotechnology companies through licensing agreements, joint ventures and equity investments is fuelling China’s strategy, aiding it in its rapid ascent up the pharmaceutical value chain,” wrote US Congressman John Moolenaar in a May 21 letter to US Treasury Secretary Scott Bessent.