The US House of Representatives Committee on Oversight and Accountability voted to send the Biosecure Act to the full House for a vote. The Bill must also be passed by the Senate and signed by the US President before it takes effect.
The Bill prohibits federal agencies from contacting biotechnology companies on the list of companies of concern and prohibits companies that use the services of companies on the list from winning government contracts. The bill gives companies a grace period until 2032 to end their relationships with the Chinese companies in question.
The Bill adds BGI, MGI, WUXI APPTEC (02359.HK) -0.100 (-0.242%) Short selling $51.31M; Ratio 7.285% , WUXI BIO (02269.HK) +0.060 (+0.414%) Short selling $34.88M; Ratio 2.148% and Complete Genomics to the list of companies of concern.
Supporters of the Bill cited the need to protect US health and genetic information from foreign adversaries, the weaponisation of such data, and the dangers of China's monopoly of the biotech supply chain. The affected companies said the bill is based on false and misleading allegations and restricts competition in the marketplace, while also noting that they do not pose a risk to US national security.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-16 16:25.)
