US Intelligence Claims Chinese Pharma Giant Illegally Shared Secrets With Beijing

U.S. intelligence officials have informed senators that WuXi AppTec Co Ltd WXIBF, a Chinese pharmaceutical company, allegedly transferred U.S. intellectual property to Beijing without authorization. This news comes amid concerns that certain Chinese biotech firms are providing technology or research and development for use by the Chinese military.

What Happened: The officials representing the FBI, the State Department, and the Office of the Director of National Intelligence disclosed this information during a classified briefing to a group of senators working on a biotech security bill in late February, Reuters reported, citing two sources on Thursday.

The briefing also highlighted that WuXi AppTec and other Chinese entities had been involved in activities in the U.S. contrary to U.S. national security interests.

The officials’ concerns were based on recent intelligence reports indicating that WuXi AppTec had transferred a U.S. client’s intellectual property to Chinese authorities without consent. The client’s identity and the nature of the information were not disclosed due to the classified nature of the material.

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WuXi AppTec, however, has denied the allegations. A company spokesperson stated, “We are not aware of any unauthorized transfers by WuXi AppTec of any U.S. client’s data or intellectual property to China. Safeguarding our customers’ information is of the utmost importance to us, and we store it in keeping with their direction,” according to the report.

The U.S. government is considering legislation restricting U.S. government funds going to Chinese companies involved in such activities. The proposed bill, known as the Prohibiting Foreign Access to American Genetic Information Act of 2024, is currently under consideration by the Senate’s Homeland Security Committee.

Why It Matters: The allegations against WuXi AppTec are the latest in a series of concerns raised by U.S. officials about Chinese companies’ involvement in sensitive sectors. Earlier in March, a researcher from ByteDance, the parent company of TikTok, was accused of unauthorized access to an American artificial intelligence safety group chat.

These developments come amid ongoing discussions about the potential impact of a forced sale or ban of TikTok on U.S. tech companies’ operations in China. The proposed legislation targeting Chinese biotech companies reflects a broader effort to address national security concerns related to China’s growing influence in critical sectors.

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