The US Congress is expected to pass a bipartisan bill to prevent some Chinese biotech companies from obtaining government funded contracts and authorize the Trump administration to ban US investment in China's artificial intelligence and advanced computer computing fields.
The latest version of the National Defense Authorization Act (NDAA), agreed upon by US House and Senate negotiators over the weekend, includes the Biosafety Act and the FIGHT China Act, targeting Chinese biotech companies and US investments in military applied technology in China.
The bill removed a provision strongly opposed by American chip giant Nvidia, which required American chip companies to prioritize meeting the needs of American customers before selling artificial intelligence chips to China.
The bill must be passed by both houses of Congress before being submitted to President Trump for signature into law.
The new version of the Biosafety Act requires the Office of Management and Budget to prohibit listed biotech companies from obtaining federal contracts, grants, or loans within one year and agree to provide these companies with the opportunity to appeal.
The companies on the US Department of Defense's "Chinese funded military industrial enterprises" list will be targeted by the above-mentioned bill, including BGI Genomics and its affiliated company BGI Intelligent Manufacturing. Bloomberg reported last month that the US Department of Defense has indicated to Congress that it will also include WuXi AppTec on the list.
These biotech companies deny being military industrial enterprises, but US lawmakers warn that China wants to dominate the field of biotechnology and that it may be used to develop advanced weapons.
The new version of the "Strike China Act" authorizes the US Treasury Secretary to prohibit or require the declaration of US investments in sensitive technology fields in China, including artificial intelligence, semiconductors, quantum computing, and hypersonic technology. US lawmakers believe that these technologies have military application potential.
The bill also includes provisions to strengthen scrutiny of foreign purchases of land near US military bases, as US lawmakers are concerned that Chinese companies will purchase these lands.
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