Chinese Biotech Firms are Booming Amid ‘Genuine’ Shift

Chinese biotech stock is reportedly “booming” while outperforming its U.S. counterpart, delivering the latest data point in a worrisome trend for America’s patients, economy, and national security.

According to a recent STAT article, while U.S. biotech stock is up 20% this year, China's is up a whopping 80%. At first glance, this could be dismissed as another short-term spike. Similar ones were observed between 2018 and 2021 when a flurry of Chinese drugmakers launched IPOs.

That interpretation, however, likely qualifies as wishful thinking.

STAT’s reporting merely adds to mounting evidence that China is on track to overtake America as the world’s biopharmaceutical leader.

China launched more than 1,000 more clinical trials than the U.S. in 2024. Chinese universities and life sciences companies are attracting more top talent. And another IPO surge is underway; China's IPO activity was about four times that of the U.S. during the first three quarters of 2025.

Meanwhile, China is about a decade into its concerted strategy to direct investments and design policy frameworks that support innovative drug development.

Thomas Mathews, head of markets for Asia-Pacific at Capital Economics, told STAT, “There seems to be a genuine policy shift underway in China, benefiting private companies involved in tech."

As time goes on and Congress fails to secure the U.S. innovation ecosystem, we will continue to see alarming statistics like these. China is rapidly gaining ground and making strategic choices to sustain the momentum. As for the U.S., it will take smart policy that protects intellectual property and fosters innovation to help keep us ahead of our competitors.

The stakes are high.

John Crowley, president and CEO of Biotechnology Innovation Organization, recently spoke to this effect during a Senate HELP Committee hearing.

"U.S. biotechnology dominance is national security,” Crowley said.