BINSA Act

Key Points

• The bill adds biotechnology to the list of technologies screened under outbound investment rules in the Defense Production Act. This covers the research, development, manufacturing, and commercialization of drugs, biological products, and therapeutic compounds.
• The bill aims to stop U.S. money and know-how from flowing to Chinese biotech firms. Lawmakers cite $136 billion in cross-border licensing deals in 2025 as evidence of a fast-growing national security risk.
• The Treasury Department must write detailed rules within one year, consulting with Defense, HHS, and intelligence officials. These rules will spell out exactly which biotech transactions with Chinese entities are banned and which must be reported to the government.
• The bill carves out agricultural biotech, industrial fermentation unrelated to medicine, and basic academic research from the new restrictions, keeping the focus squarely on pharmaceutical and therapeutic technologies.
• The Defense Department must submit a report within 60 days assessing whether U.S. capital flowing into China's biotech sector harms national security and military readiness.