Editorial: Maintain a pragmatic approach to Chinese companies
In U.S. election years, little on the political front seems to be subtle or nuanced. Complex policy proposals can easily get whittled down to single sound bites, as partisans cast fear when attacking the other side’s position. However, there seems to be one issue where of late both sides of the aisle seem to be on the same page: China=bad.
Can we share technology with China that could someday put us at risk? On the military and high-tech fronts, extreme caution seems completely justified, but do those same concerns translate to the field of life sciences? It's debatable, but legislation from Congress could have real fallout in Central Mass.
An example of the China=bad policy approach was in April when President Joe Biden signed a law to potentially ban TikTok, unless its Chinese parent company sells the social media platform. Having one of Americans’ favorite apps under the oversight of a company based in a potential foreign adversary does create some cause for concern, but TikTok seems to have worked out a plan where the Chinese government can’t access U.S. user data. Either way, the courts will decide the ultimate fate of the TikTok ban.
Hitting home in Central Massachusetts is the proposed BIOSECURE Act, which would cut off federal funding for biotech companies with close ties to governments considered to be foreign adversaries. The legislation would require American companies to stop any outsourcing or equipment contracts with foreign companies deemed security risks. Specifically named in the legislation is WuXi Biologics, a Chinese firm constructing a $300-million, 189,500-square-foot biomanufacturing facility in Worcester.
WuXi is meant to be the anchor tenant at The Reactory biomanufacturing campus in Worcester and is one of the key components in the effort to turn Central Massachusetts into its own life sciences hub, as a meaningful extension to the industry epicenter in Kendall Square. In the wake of the proposed legislation, which has not yet passed but is supported by the likes of Congressman Jake Auchincloss (D-Newton) and Seth Moulton (D-Salem), WuXi told the City of Worcester it was pausing construction at The Reactory. While in mid-June the work appeared to be ongoing, the stated delay is nonetheless concerning.
The BIOSECURE Act is aimed at keeping U.S. taxpayers dollars out of the hands of organizations affiliated with the Chinese Communist Party, according to a statement on Auchincloss’s website. However, the fallout from this proposal may keep much-needed private investment out of Central Massachusetts, which could have a cooling effect on the industry, especially when companies in the sector are struggling.
We would favor a more pragmatic approach, and not an all-or-nothing situation. Just like TikTok can protect U.S. user data from the Chinese government by putting safeguards in place, it would seem WuXi and its partners could negotiate a meaningful compromise to address the core security concerns while still maintaining ties, seeking a win-win scenario.
WBJ Web Partners
Most Recent
Most Recent
0 Comments