Allegations of Data Transfer: Chinese Pharmaceutical Company WuXi AppTec Investigated for Risking National Security

US authorities investigate pharmaceutical company for sharing data with China

Beijing-based pharmaceutical company WuXi AppTec is under investigation by the United States for allegedly transferring data from American customers to the Chinese government, putting national security at risk, according to Washington intelligence sources. The White House has expressed concerns that certain Chinese companies are developing biotechnology that could be used by the military.

The information about WuXi AppTec was shared with the Senate last month as lawmakers prepare a biotech security bill targeting the company and other Beijing-based companies. The intelligence sources provided these details on condition of anonymity. WuXi AppTec operates in the research, development, and manufacturing of pharmaceutical raw materials and medicines, serving clients that include large pharmaceutical companies and small biotechnology firms.

In response to the allegations, a spokesperson for WuXi AppTec stated that the company complies with U.S. federal and state requirements and respects its customers’ information, storing it according to their instructions. However, China’s embassy in Washington has dismissed claims that WuXi AppTec poses a threat to national security as unjustified and called for evidence to support such allegations.

WuXi generates a majority of its revenue from the US market. Between 2018 and 2023, the company’s revenue more than quadrupled, reaching US$5.6 billion. As tensions between China and the US continue to escalate over issues such as trade and intellectual property theft, this investigation highlights growing concerns about Chinese technology transfer practices that could put American businesses at risk.

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