Strategic Threat
American pharma increasingly licenses drugs from China. We get the pills. They get the IP, the jobs, and the long-term advantage.
$41B
Chinese licensing deals in 2024
8×
growth since 2019
28%
of Big Pharma drugs from China
639
first-in-class drugs from China since 2022
The Problem
While the US led drug innovation for decades, China has caught up—and in some metrics, surpassed us. Without action, the next generation of breakthrough drugs will be invented in China, not America.
Value of China-to-US pharma licensing deals ($B)
Total clinical trials per year
"Out of five critical tech sectors, China has the most immediate opportunity to overtake the United States in biotechnology."
— Harvard Belfer Center
"There will be a ChatGPT moment for biotechnology, and if China gets there first, no matter how fast we run, we will never catch up."
— Bipartisan Congressional Commission
The Solution
A simple rule: a percentage of US revenue from Chinese-licensed drugs must fund domestic R&D. Companies can spend it themselves or pay into the CHINA PAYS Fund.
See the full rate design → 15% withholding on payments to China. Covers drugs, APIs, CDMOs, CROs. Chinese companies bear 80%+ of the burden—not American patients.
US company pays Chinese biotech for drugs, APIs, CDMO, or CRO services.
Chinese company receives 85%. The 15% goes to the CHINA PAYS Fund.
Grants for domestic R&D, manufacturing, and workforce development.
BRUKINSA
BeiGene
$2.0B revenue
→ $200M/year
CARVYKTI
Legend / J&J
$963M revenue
→ $96M/year
BL-B01D1
BMS / SystImmune ($8.4B deal)
Pipeline
→ $300M+/year at peak
Ivonescimab
Summit / Akeso (beat Keytruda)
Pipeline
→ $150M+/year at peak
Why It Works
China's 3× cost advantage is killing US biotech. This fund levels the playing field.
Total cost from discovery to FDA approval
New biotech jobs from CHINA PAYS fund (thousands)
At ~$100K per biotech job, $2.8B creates 28,000 jobs annually by 2030. 95,000+ cumulative jobs over the first 6 years.
Projected new drug approvals and lives saved from reinvestment
At ~$1.5B per approved drug, $25B in cumulative funding supports 15-20 new drug programs. Each oncology drug saves ~50,000 lives over its lifetime. Rare disease drugs can save thousands more.
Fully funded by Chinese drug revenue. No appropriations needed.
High-paying biotech jobs in research, manufacturing, and clinical trials.
New American drugs treating cancer, rare diseases, and chronic conditions.
15% withholding on payments to Chinese biotech. Drugs, APIs, CDMOs, CROs. $5-6B annually by 2030. 80%+ burden on Chinese companies, not American patients.