China Moves to Ban Foreign Buyouts of Key Biotech Platforms

China has proposed barring foreign companies from buying its proprietary cell and gene therapy, siRNA and pathogen gain-of-function platforms, Fierce Biotech reported on October 16. The ban does not cover the licensing deals most Western drugmakers use to access Chinese drug candidates.

What happened

China's Ministry of Commerce and Ministry of Science and Technology have proposed adding 40 technologies to the country's list of prohibited and restricted exports, MLex reported. They span biopharma, artificial intelligence and solar power. Public comments are open until November 15.

For biopharma, the draft does two things, according to Fierce Biotech:

• Banned: foreign acquisitions of proprietary platforms in cell and gene therapy, siRNA and pathogen gain-of-function. Here, a platform is a toolkit of technologies a company can reuse across many drug programs.
• Restricted: a full overseas transfer of proprietary target identification and verification technology in cell and gene therapy and siRNA. These deals would need regulatory approval instead of being banned outright.

Out-licensing deals and outsourced research and manufacturing work are not covered by the ban. A Ministry of Commerce spokesperson said out-licensing of target identification technology will generally be approved, Fierce reported. In the meantime, exports of regulated technologies must be registered with the Ministry of Commerce. MLex said that requirement took effect right away and covers licensing abroad as well as ownership transfers, including deals already underway.

Why it matters

Chinese biotech has become a major source of drug candidates for Western companies. Chinese drug regulators put foreign transactions for Chinese biotech assets at $120 billion as of August 2026, up 36% from a year earlier, Fierce reported. Only five of 121 cross-border Chinese out-licensing deals this year, as of July 1, involved a transfer of ownership, according to PharmCube data cited by Fierce.

US and European companies have almost always bought rights to specific drugs or used Chinese platforms to find molecules. Platforms themselves have rarely changed hands. One that did, AstraZeneca's $1 billion purchase of Gracell Biotechnologies and its FasTCAR CAR-T platform, announced at the end of 2023, would likely not be possible under the proposal, Fierce noted.

Aaron Gu, a partner at Chinese law firm Han Kun, called the draft "significantly better than market expectations," Fierce reported. An unconfirmed list that circulated online in May reportedly also targeted multispecific antibodies, antibody-drug conjugates and protein degraders. The draft's ban names only cell and gene therapy, siRNA and pathogen gain-of-function platforms.

What it means for people in the industry

For business development and licensing teams in the US and Canada, the usual route stays open: licensing a specific drug, or working with a Chinese partner's platform to find molecules. Buying a Chinese company outright for its cell and gene therapy or siRNA platform would likely be blocked.

Teams with deals in progress will want to follow the comment period, which closes November 15, and the final list. Washington is also looking at these deals. Reuters reported last month, as cited by Fierce, that the US Treasury is working on rules that would likely let US companies keep striking most licensing deals for Chinese drugs.

See open pharma jobs in the US and Canada

Sources

• China looks to ban foreign acquisitions of key biotech platforms, Fierce Biotech
• China proposes new AI, biotech, solar technology export curbs, MLex