WASHINGTON, D.C.—A provision based on bipartisan legislation authored by U.S. Senators Gary Peters (D-MI), Ranking Member of the Senate Homeland Security and Governmental Affairs Committee, and Bill Hagerty (R-TN) that would help prevent foreign adversaries from stealing Americans’ sensitive genetic data and personal health information has passed the Senate as part of the annual defense bill. The provision, which is based on Peters’ bipartisan legislation, would ban all biotechnology companies that are found to be owned or controlled by a foreign adversary’s government, such as the Chinese Communist Party, and whose business practices threaten national security from receiving U.S. taxpayer dollars through federal contracts, grants, and loans. It now heads to the President’s desk to be signed into law.
“When Americans undergo medical care, such as getting their blood drawn or other tests, they should be confident that their DNA will not end up in the wrong hands,” said Senator Peters. “Yet as more biotech companies owned or controlled by our adversaries gain access to Americans’ genomic data, more threats targeting this sensitive information emerge. This provision is a critical step to ensuring that Americans’ personal health and genetic information cannot be used by foreign adversaries to undermine our national security.”
“Backed by the PRC’s balance sheet, BGI and other highly-subsidized CCP-directed companies have undercut their way into a critical position in the U.S. biotech market, creating a strategic vulnerability as they aggressively collect the genetic and other sensitive medical data of tens of millions of Americans,” said Senator Hagerty. “It’s deeply alarming that Chinese biotechnology companies are vacuuming vital genomic data that could be transferred back to China for malign or unknown purposes. We have seen this exploitative play before with Huawei’s nefarious tactics against the telecoms sectors of the United States and our allies. I’m pleased to see the Senate pass this bipartisan legislation to prevent U.S. taxpayer funds from advancing these predatory efforts that put Americans at long-term risk. I look forward to President Trump signing this bill into law.”
Biotechnology has many beneficial applications, including promoting human health, improving agricultural production, and spurring industrial innovation. However, biological data, such as DNA sequences, can be exploited for military purposes, used to invade peoples’ privacy, and even violate human rights. The U.S. intelligence community has cited the Chinese Communist Party’s concerted efforts to acquire human genetic and related data through biotechnology companies, such as the BGI Group, as a serious threat to U.S. national security. Other adversarial governments also recognize the strategic value of biotechnology to gain military and economic advantage. The U.S. has taken some steps to mitigate these threats, but the Chinese government and other adversaries often seek ways to get around these restrictions, and a more comprehensive strategic approach to addressing these threats is needed.
This bipartisan provision establishes criteria to identify biotechnology companies of concern based on risks they may pose to U.S. national security. It also requires an annual review to ensure that new companies or existing companies that try to evade the ban through corporate restructuring can be readily identified as a potential threat. The bill also creates a redress process for biotechnology companies who are identified by the annual review process as a company of concern, allowing them the chance to appeal their designation before it is final. The provision also helps keep American pharmaceutical supply chains stable and protects access to medical supplies in the event of a declared public health emergency. The bill would ensure that U.S. government employees—including uniformed servicemembers—would still be able to access health care or related services when stationed overseas.
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