Jinan Zhuocheng Bio-Tech Co., Ltd.

On February 26, 2026, the U.S. International Trade Commission (ITC) officially launched a Section 332 investigation into China’s biotechnology sector, focusing on industrial policies and pricing practices in areas such as genomic sequencing, synthetic biology, and active pharmaceutical ingredient (API) manufacturing. The investigation aims to assess the alleged impact of government support on U.S. domestic industries and is widely viewed as a potential precursor to future tariffs or trade restrictions.

On May 27, the ITC held a public hearing in Washington, D.C. In response, and under the guidance of the Trade Remedy and Investigation Bureau of China’s Ministry of Commerce, Zhou Hui, President of the China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE), led a delegation to attend the hearing.

During the proceedings, Zhou provided detailed testimony and responses to concerns raised by the U.S. side. He outlined the achievements of China’s market-oriented reforms in the pharmaceutical industry, challenged claims regarding alleged “non-market practices,” and emphasized China’s role as a stabilizing force in the global pharmaceutical supply chain.

In his remarks, Zhou stated that the Section 332 investigation lacks sufficient justification and warned against characterizing the development of China’s biotechnology industry as a threat to the United States based on preconceived assumptions.

His key arguments included:

First, the United States continues to maintain significant structural advantages in biotechnology, including basic research, platform technologies, intellectual property, clinical translation, regulatory capabilities, capital markets, and global commercialization.

Second, China’s biotechnology industry remains in a developmental stage. Chinese companies have primarily achieved progress in selected application areas, manufacturing processes, and cost-efficiency services, but have not displaced the United States in core innovation, upstream platform technologies, foundational patents, or international rule-making.

Third, China’s industrial policies are mainly designed to promote research and development, platform construction, technological upgrading, and industrial development. Such policies should not be automatically equated with market-distorting subsidies.

Fourth, China does not maintain any institutionalized system of unified pricing. Product pricing is largely determined by technological approaches, product performance, cost structures, business models, customer demand, and market competition.

Fifth, allegations of “overcapacity” lack both factual and legal foundations. Capacity serving global markets and cross-border supply chains should not automatically be considered excess capacity.

Zhou further emphasized that biotechnology is not a single homogeneous industry. Genomic sequencing, synthetic biology, and API manufacturing differ significantly in terms of technological characteristics, business models, regulatory requirements, pricing mechanisms, and supply chain structures. Therefore, they should not be assessed under a single generalized framework.

The Chamber urged the Commission to distinguish between legitimate industrial development policies and genuinely market-distorting practices, and to differentiate pricing competitiveness derived from efficiency, technology, cost advantages, and supply chain capabilities from alleged unfair pricing practices. It also called on the Commission to recognize the positive contributions of Chinese companies to U.S. supply chain stability, procurement cost reduction, product accessibility, and the commercialization of innovative medicines.

The hearing attracted broad participation from multiple stakeholders. Representatives from the Foundation for Defense of Democracies (FDD), KC BioHub, biomanufacturing company Amyris, and the international humanitarian organization Médecins Sans Frontières (MSF) attended and presented their views, highlighting how biotechnology issues have evolved beyond trade concerns to become a key intersection of geopolitics, public health, and economic security.

Following the hearing, Zhou met with Minister Lu Jiang and Minister-Counselor for Commercial Affairs Li Xie of the Chinese Embassy in the United States. Lu commended the Chamber for its professionalism and industry leadership in responding to increasingly complex international trade challenges. He noted that the Chamber should continue serving as a “super connector” between the Chinese and U.S. pharmaceutical industries, fostering mutually beneficial cooperation in innovation and supply chain resilience while encouraging a more objective and rational understanding of China’s industrial development.

Zhang Beibei, Director of the Legal Affairs Department of CCCMHPIE, also participated in the U.S. visit and related activities.