Findings; sense of Congress

(a) Findings Congress finds the following: (1) The People's Republic of China has pursued a deliberate, state-directed strategy to dominate global biotechnology, including pharmaceutical development, biologics manufacturing, and clinical research and development capabilities. (2) United States capital flowing to Chinese biotechnology companies through licensing agreements, joint ventures, and equity investments is accelerating the acquisition by the People's Republic of China of pharmaceutical intellectual property and clinical development capabilities in a manner that creates strategic dependency risks for the United States. (3) Cross-border out-licensing transactions between United States and European pharmaceutical companies and Chinese biotechnology firms totaled approximately $136,000,000,000 in 2025, representing a rapid and accelerating transfer of pharmaceutical innovation capacity to entities subject to the direction and control of the People’s Republic of China. (4) Biotechnology, including pharmaceutical development and biologics manufacturing, has civil-military dual-use applications and presents strategic dependency risks for the United States comparable to those presented by semiconductors, artificial intelligence, and other technologies already covered by title VIII of the Defense Production Act of 1950 (50 U.S.C. 4581 et seq.). (5) Section 851 of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119–60; 41 U.S.C. 3901 note prec.) (commonly referred to as the BIOSECURE Act), recognized that biotechnology is both a national security asset and a strategic vulnerability, and that the People’s Republic of China seeks to dominate biotechnology as an industry of the future. (b) Sense of Congress It is the sense of Congress that consistent application of outbound investment screening to biotechnology is necessary to prevent United States capital and intellectual property from accelerating the dominance by the People's Republic of China of the pharmaceutical innovation supply chain in a manner that will create long-term strategic dependency risks analogous to those the United States now faces with respect to rare earth elements and semiconductors.