Economic Isolationism in Healthcare: The BIOSECURE Bill and Its Effects on Pharmaceuticals and Startups

The growing trend of isolating the US from any economic ties with China has reached the healthcare sector, with a proposal to prevent American drug companies from outsourcing tasks to Chinese firms. This could have significant repercussions for American customers of Chinese companies, as well as the pharmaceutical industry as a whole.

The BIOSECURE bill, if passed, would pose major challenges for big Western drug companies that rely on Chinese capacity for manufacturing and research. Replacing this capacity would be an expensive and time-consuming endeavor, potentially taking at least five years. For biotech startups that partner with Chinese firms for research and manufacturing, this bill poses an existential threat to their ability to develop new drugs.

The concept of “national security” is complex and raises many questions about its effectiveness. Some argue that weakening China reduces the likelihood of war by diminishing its power as an adversary, while others believe it increases the risk of war due to wealthy countries having more to lose. Ultimately, the debate between nationalism and internationalism remains a contentious one.