A Chinese Investment in Biotech Raises Concerns About National Security
A recent business deal involving a Chinese investment firm and a biotech company is raising serious questions about American interests and national security. Hillhouse Investment Management, a company with financial ties to several elite American universities, has purchased a portion of WuXi AppTec, a biotech firm based in China. This company has been accused of working with the Chinese military and aiding the Chinese government in identifying Uyghur Muslims in the Xinjiang region.
The sale, which took place in October, involves WuXi AppTec’s clinical research services business in China. While executives from WuXi AppTec express optimism about the deal, the connections between Hillhouse and the Chinese government are causing alarm.
Several American universities, including Yale and Princeton, have invested millions of dollars in Hillhouse. Yale, for example, invested an initial $20 million in 2005 and has since seen a substantial return. These investments raise questions about whether American educational institutions are indirectly supporting companies that may be working against American interests.
Concerns about WuXi AppTec’s activities are not new. In February 2024, a congressional committee highlighted the company’s connections to the Chinese military. They noted that WuXi AppTec operates genetic testing centers in coordination with the People’s Liberation Army (PLA). This cooperation allows the Chinese government to gather genetic information, potentially for discriminatory purposes against Uyghur Muslims.
The congressional committee also pointed out that WuXi AppTec has received investments from organizations linked to military production. This raises the possibility that American investment dollars are supporting the growth of the Chinese military-industrial complex.
Adding to these concerns, intelligence officials have stated that WuXi AppTec has shared American intellectual property with the Chinese government without permission. This theft of intellectual property could harm American companies and weaken the country’s competitive edge.
These revelations come at a time when lawmakers are increasingly concerned about American investments benefiting China. There’s a growing call to end investments that support China’s military and economic ambitions. Legislation has been proposed to tax university endowments that invest in Chinese companies.
Hillhouse itself has been under scrutiny for its role in the Chinese government’s actions against the Uyghurs. The firm is a major investor in Yitu Technology, a company that has been blacklisted by the United States for enabling human rights abuses in China. The founder of Hillhouse has deep ties to the Chinese Communist Party.
The situation is further complicated by connections between Hillhouse’s founder and American institutions. He received early investment support from Yale University, which helped him become a major player in the Chinese investment world. He later served as a trustee of Yale, highlighting the close relationship between the university and the Chinese investment firm.
The Chinese government’s treatment of the Uyghurs has been widely condemned. Since 2017, it is estimated that over one million Uyghurs have been detained in reeducation camps in Xinjiang, where they have been subjected to forced labor and other abuses. The United States has declared China’s actions against the Uyghurs a genocide.
The involvement of American universities and other institutions in these investments raises serious ethical and national security questions. It is crucial to examine whether American money is inadvertently supporting companies and activities that undermine American values and interests. As Congress and the public become more aware of these connections, there is growing pressure to ensure that American investments align with American principles.
