A bipartisan group of U.S. lawmakers has launched a national security investigation into major American pharmaceutical companies, examining whether their clinical research operations in China may have undermined U.S. national interests.
The inquiry, led by Rep. John Moolenaar (R-Mich.), chair of the House Select Committee on China, is focusing on whether clinical trials conducted by Merck and AbbVie in China have inadvertently contributed to the expansion of the Chinese communist regime’s military capabilities or compromised sensitive U.S. intellectual property.
Both companies have been instructed to provide comprehensive records by July 17, detailing their due diligence processes, data protection protocols, and site-specific operational standards for all clinical trials conducted in China.
A central geopolitical concern outlined by the committee involves U.S. firms collaborating with institutions linked to the Chinese military.
Lawmakers warned of the potential for sensitive technology transfer to foreign military entities, saying: “Conducting this research at PRC military hospitals puts the cutting-edge, biotechnology Intellectual Property of American companies at potential risk of being transferred to the Chinese military.”
Human Rights and Ethical Concerns
The investigation also highlights ethical issues tied to the geographic and socio-political context of certain trials, particularly those conducted in the Xinjiang region. The letters describe Xinjiang as the epicenter of Beijing’s “genocide” targeting Uyghurs and other ethnic and religious minorities.Lawmakers cited documented shortcomings in medical ethics, noting that Chinese researchers have identified serious “lapses in securing informed consent” from vulnerable participants.
The letters further argue that China’s rapid expansion as a global hub for pharmaceutical trials is underpinned by structural ethical concerns and state influence: “Through a combination of regulatory reforms, state subsidies, and (at best) questionable ethics, China has transformed itself into the cheapest and fastest place in the world to run early-stage human drug trials.”
Committee data indicates extensive involvement by both companies in higher-risk regions and institutions.
Merck has sourced 224 clinical trials in China since 2005, including at least 31 in Xinjiang and 40 conducted at medical centers affiliated with China’s military. AbbVie has sourced more than 100 trials since 2007, with at least 17 sites in Xinjiang and 16 involving military-linked institutions.
The investigation comes amid growing concern in Washington over China’s expanding biotechnology sector. These concerns echo warnings from former FDA Commissioner Dr. Scott Gottlieb, who has repeatedly highlighted risks associated with clinical research in China.
Gottlieb has pointed to the rapid growth of China-based trials and the need for U.S. reforms to maintain competitiveness, while also raising concerns about data reliability and the implications of China’s military-civil fusion strategy.
Speaking at the American Enterprise Institute last year, he said that by 2024, one-third of new U.S. drug compounds would originate from China.
The congressional probe coincides with broader legislative efforts, including the Biotech Investment National Security Act, which seeks to subject U.S. biotechnology licensing deals, joint ventures, and equity investments in China to stricter national security review.