No CRS summary available for this bill.
This section states congressional findings that China is pursuing state-directed dominance in biotechnology and pharmaceutical development, that US capital flows to Chinese firms through licensing and investments totaled $136 billion in 2025 and accelerate strategic dependency risks, and that biotechnology presents civil-military dual-use concerns comparable to semiconductors and artificial intelligence. It notes the BIOSECURE Act's recognition of these vulnerabilities and calls for consistent outbound investment screening.
This section adds biotechnology—defined as the research, development, manufacturing, or commercialization of pharmaceutical products (i.e., drugs under 21 U.S.C. 321(g)(1)), biological products, and therapeutic compounds—to the lists of covered sectors in paragraphs (10)(A) and (7)(A) of section 809 of the Defense Production Act of 1950. It also adds licensing a prohibited technology from a covered foreign person to the list in paragraph (4)(A).
This section directs the Secretary of the Treasury to issue a rule within one year defining the parameters of “biotechnology” under paragraphs (7)(A) and (10)(A) of the Defense Production Act. The definition must reflect consultations with the Secretaries of Health and Human Services and Defense and the Director of National Intelligence; prioritize licensing, joint ventures, and equity investments in drug discovery platforms, clinical development, and biologics manufacturing with covered foreign persons; address transfers of pharmaceutical innovation capacity to entities controlled by the People’s Republic of China; encompass research, development, manufacturing, and commercialization of pharmaceutical products, biological products, and therapeutic compounds; and exclude agricultural biotechnology, unrelated industrial fermentation, and basic academic research.
This section requires the Secretary of Defense to submit a report within 60 days to the House and Senate armed services, intelligence, financial services, and banking committees assessing whether United States capital flows into China’s biotechnology sector, including licensing transactions, negatively affect national security and military readiness. The report must be submitted in unclassified form with a possible classified annex.