US Senate panel sets hearing on China's Wuxi Apptec, BGI bill

News of the Senate bill, and similar legislation in the House, has sent shares of Wuxi Apptec tumbling in recent weeks on fears they would hurt the company's large U.S. business.

The U.S. Senate panel said on Monday that it will hold a hearing on March 6 on a bill that would prohibit federal agencies from contracting with China's BGI, Wuxi Apptec and other biotechnology companies of concern.

The bill would also stop the government from entering into contracts with companies that use their equipment or services. News of the Senate bill, and similar legislation in the House, has sent shares of Wuxi Apptec tumbling in recent weeks on fears they would hurt the company's large U.S. business. The Senate Committee on Homeland Security and Governmental Affairs hearing is a procedural step, also called a mark-up, to discuss next steps on the bill.

A House bill introduced by Republican Congressman Mike Gallagher, chair of the House select committee on China, accuses the companies of aiding Beijing's military. Wuxi Apptec has denied ties to China's military and said its business does not pose national security risks to any country.

BGI Group has said that it supports protecting personal data, but said the legislation "which will effectively drive BGI from the U.S. market will not accomplish this goal." Earlier this month a bipartisan group of lawmakers told top Biden administration officials the U.S. should review WuXi AppTec and WuXi Biologics for sanctions.

The lawmakers told Treasury Secretary Janet Yellen, Defense Secretary Lloyd Austin and Commerce Secretary Gina Raimondo that the global pharmaceutical giant's links to China's Communist Party and military threatened U.S. national security. Wuxi shares have fallen 36% in the last month.