By Kimberley Kao


U.S. lawmakers have written to various government bodies, including the Department of Defense, seeking to investigate Chinese biotech company WuXi AppTec and one of its units over alleged ties to the Chinese military.

In a letter addressed to the secretaries of the U.S. departments of defense, commerce and the Treasury, the lawmakers said they "strongly urge" the agencies to investigate WuXi AppTec and subsidiary Wuxi Biologics, and consider adding them to their respective control lists.

The letter, dated Monday, was signed by U.S. Representative Mike Gallagher, chairman of the Select Committee on the Chinese Communist Party, and Representative Raja Krishnamoorthi, ranking member of the committee. Senators Gary Peters and Bill Hagerty also signed it.

WuXi AppTec did not immediately respond to a request for comment on Tuesday.

The company had previously been named in a bill introduced late last month that aims to bar federal contracts with some Chinese biotech entities due to alleged connections with the People's Liberation Army.

WuXi AppTec has previously denied any wrongdoing and said that it abides by the laws and regulations in the countries in which it operates, including China and the U.S.

Monday's letter said that biotechnology is rapidly becoming a key component of U.S. technological competition with the Chinese Communist Party and other U.S. adversaries.

"It is therefore important that the U.S. Government use its licensing, sanctions, and related tools to address the risks of any PRC (People's Republic of China) biotechnology company that threatens U.S. national security by carrying out human rights abuses or advancing PLA capabilities," the letter said.

Shares of both WuXi companies have fallen sharply since the U.S. draft bill.

WuXi AppTec has tumbled by over 26% since Jan. 26, while Wuxi Biologics shares have shed more than 29%.

China and Hong Kong markets are closed for a public holiday.


Write to Kimberley Kao at kimberley.kao@wsj.com


(END) Dow Jones Newswires

02-12-24 2129ET