The U.S. is losing its biotech edge over China — and that's bad news for the Bay Area

San Francisco Chronicle​

4 days ago

From gene therapies to cancer breakthroughs, California has been the driving force behind America's biotechnology industry. But today, that edge is slipping.
A National Security Commission on Emerging Biotechnology report to Congress in April stated that the U.S. is dangerously close to falling behind China in biotechnology innovation, and called for urgent investment and strategic coordination to maintain global leadership.
Genentech's founding in 1976 in South San Francisco marked the start of the modern biotech era, and, ever since, California has been at the forefront of countless scientific discoveries and medical innovations. However, recent funding cuts and an overreliance on China for manufacturing pipelines leave our nation vulnerable. As the report urges, the U.S. must prioritize biotechnology at the national level or risk relying on China to use this strategic power for good.
In 2011, the Chinese government declared biotechnology a ' strategic emerging industry ' and has since committed billions to secure dominance in areas like synthetic biology, gene editing and biomanufacturing. In 2024 alone, China conducted over 7,100 clinical drug trials, surpassing the United States and accounting for nearly 40% of global trial activity. Despite U.S. tariffs under the Trump administration designed to counter China's economic influence, China's gross domestic product has remained strong, fueling even greater investment in strategic sectors like biotechnology.
By contrast, the U.S. continues to lose ground, constrained by outdated regulatory frameworks and a lack of coordinated federal strategy. While China is building a biotech empire with deliberate, state-backed coordination, the U.S. is stuck playing defense with shrinking budgets.
U.S. federal support for biomedical research is slipping, with the budget for the National Institutes of Health facing a 40% cut in the coming year. For a region like the Bay Area, home to some of the world's most promising biotech startups and research institutions, these cuts have a direct toll, including the termination of $314 million in funding that was to be used to train the next generation of biomedical and health researchers. Major institutions like UCSF, Stanford and UC Berkeley are now bracing for delayed projects, staffing freezes and reductions in early-career fellowships that are vital to sustaining long-term innovation.
On a national level, promising studies have been halted midstream, leaving research gaps in breakthrough treatments for cancer, Alzheimer's disease and other major infectious diseases that impact millions of Americans.
When U.S. investment in domestic biotech falters, it slows innovation at home and creates an opening for global competitors to step in. China's government is strategically positioning its biotech sector to fill the gap left by stalled American research. Just last month, U.S. pharmaceutical firms signed 14 licensing deals with Chinese biotech companies worth up to $18.3 billion, underscoring our growing dependence on China's rapidly maturing R&D capabilities.
This shift carries significant implications for California. It is home to over 16,500 life sciences companies and establishments, more than any other state, according to the California Biotechnology Foundation. The state directly employs more than 466,000 workers and generates more than $414 billion in annual economic output. In 2023, California led the nation in venture capital investment, raising over $34 billion for life science companies. Further, California accounted for 40% of all U.S. life sciences patents filed in 2023, and more bioscience patents are issued to California researchers than to those in any other state.
Losing ground to China isn't just an economic risk; it's also a national security threat that could reshape who controls the future of health care. While the U.S. system is built on competition and patient outcomes, China's state-controlled model prioritizes strategic control and global influence. In America, ethical safeguards, transparency and regulatory review shape medical progress. In China, the government's control allows for faster approvals but also looser oversight, creating the risk of untested or misused science. The National Security Commission on Emerging Biotechnology warned that China's biotech advances could be weaponized — from battlefield-ready biologics to more nefarious applications.
As a scientist working in biotechnology in the Bay Area, I understand that California plays a central role in this global race. From early-stage research in university labs to large-scale manufacturing by leading biotech firms, the state's infrastructure, talent and capital drive America's competitiveness. The Bay Area remains one of the most dense and productive biotech ecosystems in the world, thanks to its concentration of top-tier research institutions, world-class hospitals, a culture of entrepreneurship and the ability to attract the world's best and brightest to its academic and industrial ecosystem.
But even here, the warning signs are hard to ignore. Federal NIH cuts have already disrupted major research projects at UC campuses, impacting our ability to attract talented students to our graduate and postdoctoral research programs, while venture capital is increasingly eyeing faster-moving regulatory environments abroad, preferring to license in late-stage assets from China instead of funding early-stage research at home.
If Washington fails to prioritize a national biotech strategy, California's innovation engine could slow just as competitors abroad gain momentum. The state's economic future, public health leadership and ability to attract global talent are all at stake.
China is no longer a distant biotech challenger and is actively reshaping the industry with its speed, regulatory agility and cost-efficiency, shifting the innovation center of gravity away from the U.S. The National Security Commission on Emerging Biotechnology has made clear that this is not just a matter of competition, but a strategic threat with long-term consequences for public health and national security.
If America is to remain a global leader in biotechnology, we must urgently invest in our domestic research ecosystem and rebuild the infrastructure that has powered decades of discovery or be forced to surrender it to a rival that plays by different rules.
Ash Jogalekar is a scientist and science writer based in the Bay Area. He is a scientist in residence at the Oppenheimer Project and works on emerging threats and technology risks in areas like biotechnology and AI.