Chinese companies, including those with ties to the Chinese Communist Party and military, have made significant payments to U.S. scientists for intellectual property developed in taxpayer-funded labs.
A number of Chinese pharmaceutical companies, including those tied to the Chinese Communist Party (CCP) and the People’s Liberation Army (PLA), have made extensive royalty payments to U.S. government scientists for the use of intellectual property developed in taxpayer-funded research laboratories. One such company is WuXi AppTec, a biotech firm known for its deep connections with the CCP and PLA, which has made multiple payments to the National Institutes of Health (NIH) scientists for intellectual property since 2012, according to records from a Freedom of Information Act request by Open The Books.
WuXi AppTec, along with other Chinese companies, has maintained financial ties with the NIH, with at least 39 Chinese firms making royalty payments to NIH scientists. Among them are subsidiaries of Sinopharm, a state-owned pharmaceutical conglomerate, including the Wuhan Institute of Biological Products, which has previously collaborated with the Wuhan Institute of Virology.
Brandon Weichert, a national security expert, has called these payments a “major conflict of interest,” raising concerns about foreign influence on American scientific institutions. “Money is influence, it’s access,” Weichert said, noting that these relationships provide Chinese companies and scientists with favorable access to U.S. research. He pointed to a 2019 incident at the NIH-funded MD Anderson Cancer Center, where three Chinese scientists were ousted for their involvement in efforts to steal U.S. research, as a significant warning about Chinese intentions.
WuXi AppTec has also been tied to China’s military through its collaboration with PLA scientists on medical research, such as treatments for altitude sickness, as reported by Reuters. The company has integrated the CCP into its corporate structure since 2005, with more than 1,000 of its employees being active CCP members by 2013.
The relationship between WuXi AppTec and the NIH is part of a broader concern about Chinese companies exploiting publicly funded research in the U.S. to benefit their own advancements. The NIH has received over $2.6 billion in royalties since 2010, with NIH scientists entitled to a portion of these funds through intellectual property licenses. Payments vary based on the revenue generated from each license, according to NIH guidelines. However, the NIH has consistently declined to release specific figures related to how much has been paid by WuXi AppTec and other Chinese companies.
In response to growing concerns, the U.S. House of Representatives recently passed the Biosecure Act, which would block U.S. companies from conducting business with WuXi AppTec and similar firms due to national security risks. The Act is seen as a necessary step to limit China’s ability to influence U.S. research, particularly as evidence continues to emerge about the close ties between WuXi AppTec and the PLA, as reported by The Jamestown Foundation.
Beyond WuXi AppTec, other Chinese companies involved in the NIH royalty payments, such as Sinopharm subsidiaries, are raising similar concerns. For instance, Sinopharm’s subsidiary, the Wuhan Institute of Biological Products, has been involved in controversial partnerships, including collaborations with the Wuhan Institute of Virology. These partnerships have fueled ongoing suspicions about China’s long-term goals in biomedical research and the extent of its influence over global health initiatives.
As the NIH continues to grapple with the implications of these relationships, Open The Books has emphasized the need for more transparency regarding the financial ties between NIH scientists and foreign companies. Christopher Neefus, the director of communications at Open The Books, stated, “When public health and national security implications are involved, ‘trust us’ just doesn’t suffice.” Despite these concerns, the NIH and WuXi AppTec have not yet commented on the specific nature or value of these transactions.
