A bipartisan group of U.S. lawmakers have opened national security investigations into five of the country's largest pharmaceutical companies over their clinical trial operations in China.

The companies under investigation include Merck, AbbVie, Eli Lilly, Pfizer and Bristol Myers Squibb, with the investigation raising questions about intellectual property exposure, military entanglement and ethical standards at trial sites in sensitive regions.¹

The investigations, led by Republican Representative John Moolenaar of Michigan, chair of the House Select Committee on China, were disclosed Monday in letters to Merck and AbbVie, along with letters later sent to Lilly, Pfizer and Bristol Myers Squibb. According to the letters, the companies have until July 17 to respond with details on due diligence processes, data protection standards and oversight procedures at their Chinese trial sites, particularly those in the Xinjiang region and at hospitals affiliated with China's military.¹

What do the letters allege?

The letters stop short of accusing any company of wrongdoing. Addressed to Merck CEO Robert Davis and AbbVie CEO Robert Michael, the correspondence states explicitly that "while there is no evidence" that either company "has engaged in illegal activity or wrongdoing, conducting clinical trials in China... exposes American companies to ethical and security risks."¹

According to the letters, New Jersey-based Merck has sponsored or collaborated on 224 clinical studies in China since 2005, including at least 31 trials in Xinjiang and 40 at medical centers affiliated with China's military.¹ Illinois-based AbbVie has reportedly sponsored or collaborated on more than 100 clinical studies in China since 2007, including at least 17 sites in Xinjiang and 16 at military centers.¹

"Conducting this research at PRC military hospitals puts the cutting-edge, biotechnology intellectual property of American companies at potential risk of being transferred to the Chinese military," the letters said.

The committee also flagged Xinjiang specifically, noting that the region is the epicenter of what lawmakers described as “Beijing's genocide” targeting Uyghurs and other ethnic and religious minorities, and citing research documenting lapses in securing informed consent from trial participants at Chinese sites.² The letters argue that the Uyghur Forced Labor Prevention Act of 2021, while not specifically addressing clinical trials, reflects best practices for ensuring operations do not involve forced labor.

Why is the investigation important?

The investigations arrive as U.S. policymakers are increasingly alarmed by China's rapid ascent in pharmaceutical development. The letters frame the inquiry within a broader industrial context, saying: "Through a combination of regulatory reforms, state subsidies, and (at best) questionable ethics, China has transformed itself into the cheapest and fastest place in the world to run early-stage human drug trials."

By 2024, the U.S. share of global early drug development programs had dropped to around 37% from 48% in 2015, while China's share rose to over 32% from 8% over the same period.² China has now outpaced the U.S. in total trial volume, with global drugmakers signing a record $138 billion worth of deals in 2025 to license Chinese experimental medicines.¹

The National Security Commission on Emerging Biotechnology warned in a December report that "China has systematically built a vertically integrated biotechnology ecosystem that is now in prime position to challenge U.S. leadership."

One of the key factors is the Biosecure Act, signed into law by President Trump late last year, restricting federal agencies' business dealings with non-U.S. biotechnology companies. The measure represents a significant tightening of the regulatory perimeter around U.S.-China biotech engagement, as the current investigation signals that Congress is prepared to scrutinize companies already operating within that perimeter, not just those planning to.

Sources

1. US House committee opens investigation into Merck, AbbVie China drug trials Reuters June 30, 2026 https://www.reuters.com/world/us-house-committee-opens-investigation-into-merck-abbvie-china-drug-trials-2026-06-30/
2. China biotech licensing boom to hit record in 2026 as pipeline swells Reuters February 13, 2026 https://www.reuters.com/sustainability/climate-energy/china-biotech-licensing-boom-hit-record-2026-pipeline-swells-2026-02-13/