By Karen Freifeld
(Reuters) – The U.S. Senate’s homeland security committee voted on Wednesday to approve a bill that could restrict business with Chinese biotech companies like BGI and WuXi Apptec on national security grounds.
The committee voted 11-1 to move forward the draft legislation.
Senator Rand Paul, a Republican from Kentucky, was the sole ‘no’ vote and said that senators were “taking advantage of anger towards China to do sort of parochial protectionist things for their particular state.”
He also voiced concerns about the effect the bill could have on the biotech supply chain for U.S. companies.
The bill is designed to keep Americans’ personal health and genetic information from foreign adversaries. The bill has spurred deep concern among investors, driving a sell-off in the shares of WuXi AppTec when news of its introduction first reached Chinese markets last month.
The companies have denied they pose any security threats.
A companion bill introduced in the House in January accuses BGI, a genomics company, of posing a threat to U.S. national security through its collection of genetic data. It describes MGI and Complete Genomics as subsidiaries and affiliates.
WuXi Apptec, which provides R&D and manufacturing services to the pharmaceutical and healthcare industry, allegedly has ties to the Chinese military, according to the House version of the bill.
The companies have said the proposed legislation contains false, misleading and unfounded allegations.
Once it moves out of committee, the bill must pass in both the full Senate and the House, and then needs be signed by the president.
(Reporting by Karen Freifeld, additional reporting by Muchael Erman in New Jersey; Editing by Stephen Coates, Chizu Nomiyama and Franklin Paul)
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