Influential voices are advocating for the inclusion of biotechnology in the Comprehensive Outbound Investment National Security (COINS) Act, aiming to categorize it as a strategic technology. Biotech entrepreneur Jason Kelly recently underscored this sentiment, stating in a social media post, > "Every day another article… Put biotech on COINA Act list of strategic technologies and can slow this down easily. Common sense and good for US science and patients." This call reflects growing concerns over the flow of U.S. capital and intellectual property to China's burgeoning biotech sector.
The COINS Act, enacted as part of the fiscal year 2026 national defense bill, is designed to restrict U.S. outbound investments in sensitive foreign sectors, currently including artificial intelligence, semiconductors, and quantum information technologies. Lawmakers, including House Select Committee on the Chinese Communist Party Chairman John Moolenaar, have urged Treasury Secretary Scott Bessent to designate biotechnology as a prohibited sector under the Act. This push aligns with a broader U.S. policy trajectory that views critical technologies as national security assets.
Concerns are mounting over the accelerating transfer of U.S. capital, intellectual property, and expertise to China. Cross-border out-licensing transactions between multinational pharmaceutical firms and Chinese biotech companies reached approximately $136 billion in 2025, with nearly half of all large global pharmaceutical licensing deals involving Chinese counterparties. These collaborations, sometimes extending beyond conventional licensing into co-development structures, raise alarms about potential intellectual property diversion.
Expanding the COINS Act to include biotechnology could significantly complicate outbound investment activities for pharmaceutical companies and investors. Experts suggest that while an outright ban on all licensing activities is unlikely given the intertwined nature of U.S. and Chinese biotech, a notification pathway could lead to longer due diligence processes and increased costs. The Treasury Department is expected to issue final regulations implementing the COINS Act by March 13, 2027.
The debate highlights a tension between safeguarding American competitiveness and ensuring patient access to innovative therapies. While some argue that restricting ties with China could harm patients, proponents emphasize the need to bolster the domestic biotech sector. The potential inclusion of biotechnology under the COINS Act underscores the U.S. government's strategic focus on securing critical technology supply chains and maintaining national economic security.
