Treasury Proposes to Prohibit U.S. Investment in Chinese Biotech: What It Means for China Licensing Deals
On October 26, 2026, the U.S. Treasury Department published proposed regulations (new 31 C.F.R. Part 851) in the Federal Register implementing the Comprehensive Outbound Investment National Security Act (COINS Act). The proposed regulations would prohibit investments by U.S. persons in Chinese biotechnology companies involved in the development or production of small molecules, biologics, vaccines, cell and gene therapies, and their delivery mechanisms where a biological system is used to modify, enhance, produce, or control them. The regulations also prohibit U.S. persons from establishing joint ventures with Chinese partners to conduct such activities. For companies that in-license drug candidates from Chinese biotechs, the license itself remains permitted, but several deal features that are now market practice (licensor equity, NewCos, profit-share collaborations, and certain governance terms) would carry real risk. Comments are due December 7, 2026. The rule is not yet effective. The “effective date” referenced below is the date of the entry into force of the new regulations, which is likely to be close to the end of the first quarter of 2027.
Now Is The Right Time For A Hong Kong Biotech Listing
Hong Kong has recently emerged as the number one IPO venue globally, and one of the sectors driving this is biotech. For China-based biotechs looking to float, Hong Kong is a natural destination. But biotechs based anywhere in the world may wish to ride the current wave, as Meng Ding explains.
EU Investigation Into PRC Public Procurement for MedTech May Impact EU Market Access for PRC Companies
Concerns about the PRC’s medical devices procurement practices have led the EU to launch an investigation which could lead to the EU subjecting PRC companies, including MedTech companies, to market access restrictions in the EU. Sven De Knop, Lei Li and Maryanne Kamau explain.
Hong Kong’s Biotech Listings Emerge From Two-Year Downturn With 18As Booming
Biotech and medtech startups based in the People’s Republic of China (P.R.C.) are flocking to Hong Kong to float. Meng Ding explains how a combination of listing reforms and an explosion of innovation in the Greater Bay Area have led to Hong Kong’s 18A process being popular for life sciences.
Chinese Parties to International Licensing Deals Should Consider How Terms Translate
Licensing deals are still relatively new in China compared to the United States and Europe. Tom Duley and Ruchun Ji explain why this means Chinese parties need to be careful about the history of terms and the choice of governing law and arbitration venue when negotiating contracts.
China’s Generative AI Measures Could Affect Life Sciences Companies That Make Apps
Those medtech companies which embed AI into an app allowing healthcare professionals or patients to ask questions and to receive a response will probably need to comply with China’s new Interim Measures for the Management of Generative Artificial Intelligence Services (the “Measures”). Lianying Wang explains.
