Chinese funds to US biotechs to be limited under Trump

The US government is now determining whether Chinese investment into certain industries jeopardizes US intellectual property. In addition to about 25 other industries, biotech companies may now be reviewed by the committee for foreign investment into the US even with respect to non-controlling investments. Previously, this committee only reviewed 100% foreign acquisition of US companies. Over the last few years, Chinese and Asian investors have had significant venture capital investment into the biotech industry. The Treasury Department claims they want to protect the “erosion” of technology from foreign investment. Implemented only in a pilot program now, if the laws take effect, a vital source of capital for biotechs will be reduced significantly.