Chinese biotech stocks surge as US excludes blacklisting sector from defense bill.

From Investing.com: 2024-12-08 23:13:33

Chinese biotech stocks, including WuXi, surge as proposed U.S. legislation to blacklist the sector is excluded from a defense bill. WuXi AppTec and WuXi Biologics rise over 8% and 9% respectively, while other firms like Asymchem Laboratories and Frontage Holdings see gains between 2% and 5%. The Biosecure Act, targeting five Chinese biotech firms due to national security concerns, was excluded from the National Defense Authorization Act for 2025. This move saves WuXi and its peers from losing major government contracts. Despite bipartisan opposition and Chinese authorities calling it discriminatory, the Biosecure Act still needs Senate approval to become law. Trade tensions between the U.S. and China persist, with the 2025 NDAA containing provisions against Chinese companies, particularly in the telecom sector.



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