US authorities investigate pharmaceutical company for sharing data with China

Beijing-based pharmaceutical company WuXi AppTec is under investigation by the United States for allegedly transferring data from American customers to the Chinese government, which poses a risk to national security, according to sources from Washington. The White House is particularly concerned about Chinese companies developing biotechnology that could be exploited by the Chinese military. This information was shared with the Senate last month as lawmakers work on a biotech security bill targeting WuXi AppTec and other Beijing-based companies.

WuXi AppTec is involved in research, development, and manufacturing of pharmaceutical raw materials and medicines, working with clients ranging from large pharmaceutical companies to small biotechnology firms. However, an Office of the Director of National Intelligence alerted the White House about Beijing’s scientific and technological advancements through intellectual property theft in order to gain economic and military advantages. In response to these allegations, WuXi AppTec stated that they comply with U.S. federal and state requirements and are not aware of any unauthorized transfers of customer data to China. They emphasized the importance of protecting their customers’ information and storing it according to their instructions. Despite this, over two thirds of WuXi AppTec’s revenue comes from the United States last year.

The embassy of China in Washington rebuked Congress for claiming that WuXi AppTec posed a threat to national security without providing convincing evidence to support their allegations. The debate around potential risks associated with data transfers and intellectual property theft highlights ongoing concerns about the relationship between Chinese companies and the U.S., particularly in sensitive sectors like biotechnology and pharmaceuticals.

By Sophia Gonzalez

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