Open Innovation Trend

China locked up Biotechnology

China seeks to revise the list of technology restrictions on exports

Including bio-innovation technologies such as gene editing

China is pushing for a policy to restrict its biopharmaceutical technology from escaping abroad.

 

In the pharmaceutical industry, where open innovation has become a trend, the U.S.

 

and China are taking the opposite step by fighting for technological supremacy.

 

According to a report published by the Bioeconomic Research Center of the Korea Bio Association on the 14th, China's Ministry of Commerce recently collected public opinions on revising its export-restricted technology catalog.

 

The notice posted on China's commerce ministry's website calls for revising the list of technologies that will restrict exports based on the Foreign Trade Act and the Technology Import and Export Management Regulations with the Ministry of Science and Technology.

 

The technology export referred to here refers to the transfer of technology from China to overseas through the transfer of patent rights or patent application rights, patent enforcement permits, technology secret transfer, and technology services.

 

In the revision of the list of technology export restrictions, technologies such as the Internet, solar and new energy, autonomous driving, and biopharmaceuticals that have made rapid progress in China in recent years have been raised.

 

Biopharmaceutical technology includes human-related cell cloning and gene editing technology, CRISPR gene editing technology, and synthetic biology technology.

 

In particular, gene editing and synthetic biology are areas that are actively being studied around the world.

 

Genetic editing technology refers to deleting or rewriting genetic information by cutting a specific part of DNA for the purpose of treating or preventing diseases.

 

Reproductive cell editing is strictly limited to ethical issues and potential risks, so most companies use patient somatic cells.

 

Synthetic biology technology is a technology that redesigns biological systems such as enzymes, biosynthetic pathways, and cells to create biological systems with new functions.

 

China is promoting innovation in synthetic biology technology and applying it to a wide range of areas such as new drug development and resource supply through the 14th Five-Year Bio-Economic Development Plan.

 

While open innovation, which is jointly conducted by multinational pharmaceutical companies, is actively carried out, the battle for supremacy between China and the United States over innovative technologies continues.

 

Earlier, the U.S.

 

strengthened its trading monitoring for fear of China taking biotechnology away.

 

In 2018, the Foreign Investment Risk Review Modernization Act (FIRMA) was enacted, which could restrict foreign investors such as China from accessing the U.S.

 

market.

 

This is to strengthen transaction monitoring on Chinese capital, from simple license transactions to M&A transactions.

 

Recently, the government is also pushing for the enactment of the National Core Capacity Defense Act (NCCDA), which regulates investment and transaction activities in overseas concerned countries such as China.

 

In addition to semiconductors, batteries, artificial intelligence, and quantum technologies, pharmaceuticals and bioeconomics were included in the technologies subject to national core competencies.

 

China's push to restrict exports of biopharmaceutical technology is seen as a countermeasure to the U.S.

 

move.

 

It also shows confidence that China is not behind the U.S.

 

in gene editing technology and synthetic biology.

 

The report said, "China's recent attempt to designate bio-medicine-related technologies such as gene editing technology and synthetic biology as export-restricted technologies are believed to be on par with the U.S.

 

in this technology field."