The BGA Health Team led by Senior Director Tiffany Ma, wrote an update to clients on new U.S. initiatives in the bioeconomy that have implications for the health care sector.

Context

  • The United States launched a new initiative to boost the bioeconomy earlier this month that could reshape the country’s thinking both at home and across the Indo-Pacific region. The National Biotechnology and Biomanufacturing Initiative was kickstarted by the signing of an executive order by U.S. President Joe Biden on September 12 and a summit held on September 14 featuring companies. 

Significance

  • The new initiative is designed to help the United States better compete in the global industrial revolution in biotechnology and biomanufacturing, including in Asia given the dynamics of U.S.-China competition. The initiative includes a key role for the private sector and has a core focus on health, pharmaceuticals and life sciencesin addition to other sectors such as agriculture, energy and defense.
  • The initiative has already triggered reactions from parts of the region, even though its exact impact remains to be seen. After the initiative was announced, some regional headlines focused on the fact that China’s leading contract drugmaker WuXi Biologics, which has ties to U.S. firms, lost about 20 percent of its value in a single day, suggesting that some form of U.S.-China decoupling is on the way.

Implications

  • Companies should watch for clearer indications about how this initiative will translate into reality and how U.S. policy evolves. The executive order marks only the start of the initiative’s lifecycle, as agencies now have 180 days to submit reports identifying priority areas and opportunities for public-private cooperation.
  • Businesses should also monitor how the initiative and related developments affect ties with allies and partners in the Indo-Pacific region. The order directs agencies to prioritize actions with foreign partners, from aligning international classifications of biomanufactured products to promoting biosafety best practices in areas like research on critical pathogens.

BGA will continue to keep you updated on developments as they occur. If you have comments and questions, please contact BGA Senior Director Tiffany Ma at tma@bowergroupasia.com

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Senior Director

Tiffany manages BGA’s client relationships and engagements. She directs analysis and activities designed to advise Fortune 500 companies on public policy issues, regional geopolitics and stakeholder management. Tiffany is an expert on Asia-Pacific security issues. She regularly writes and speaks on China-Taiwan relations, U.S.-China relations and Asia-Pacific maritime security. Her research and analysis has been incorporated into regular briefings with decision-makers, including at the U.S. Department of Defense, the U.S. Department of State and with staff and members of Congress. She has been featured in both U.S. and international media outlets, including Agence France-Presse, Voice of America, Christian Science Monitor ... Read More