China Drafts Export Rules to Block Foreign Acquisitions of Core Biotech Platforms

Key points

• China’s Ministry of Commerce published a draft update to its export blacklist on Friday, proposing bans on foreign acquisitions of proprietary cell/gene therapy and siRNA platforms.
• The rule restricts full transfers of drug target identification technologies in these fields, requiring regulatory approval for such deals.
• Out-licensing agreements and outsourced manufacturing services are explicitly excluded from the ban, allowing most current Western-Chinese partnerships to continue.
• Foreign transactions of Chinese biotech assets reached $120 billion by August 2026, a 36% year-over-year increase.
• The policy is part of a broader update covering 40 key technologies, including AI and photovoltaic green energy.

Background

This development follows a surge in Western pharmaceutical companies acquiring Chinese assets, such as Novartis’s $7.8 billion deal for Abogen Biosciences and Roche’s $1.16 billion agreement with Rona Therapeutics. These deals have primarily involved licensing specific drug candidates rather than acquiring entire platforms, a distinction the new Chinese rules aim to preserve.

How outlets are covering it

Fierce Biotech emphasizes that the draft rule is less restrictive than earlier rumors, which included bans on antibody-drug conjugates and protein degraders. The outlet highlights that the exclusion of out-licensing ensures that the momentum of cross-border collaboration remains intact. AP News frames the move as part of a broader Chinese effort to curb tech exports across multiple sectors, including AI and solar, reflecting a strategic shift in Beijing’s approach to global technology competition.

Why it matters

The policy signals a shift from a purely open market to a controlled export regime for critical biotech infrastructure. By distinguishing between licensing and full ownership transfers, Beijing seeks to retain domestic R&D capabilities while still allowing Chinese firms to generate foreign currency through royalties. This could influence future deal structures, pushing Western buyers toward licensing agreements rather than full acquisitions.

What to watch

The Chinese government is accepting public comments on the draft policy until November 15. Until the revised export control catalogue is officially enacted, any export of technologies within the regulated scope must be registered with the Ministry of Commerce. Foreign buyers are advised to conduct due diligence regarding these potential restrictions.