中国医疗保健_地缘政治风险重新浮现，但《生物安全法》实际影响可能较小-China Healthcare_ Geopolitical risks re-emerging but actual impact of Biosecure Act could be small

Summary of J.P. Morgan's Research on China Healthcare Industry Overview - The report focuses on the China healthcare sector and its exposure to geopolitical risks following recent legislative developments in the U.S. [1][4] Key Points and Arguments 1. Geopolitical Risks: The passage of a lighter version of the Biosecure Act and the announcement of a 100% tariff on imports from China are expected to heighten concerns among investors in the China healthcare sector. Volatility in this sector may increase, potentially surpassing that of the broader market [1][4] 2. Legislative Developments: The House version of the NDAA 2026 does not include the Biosecure Act, and the upcoming negotiations between the House and Senate will be crucial in determining the fate of the Biosecure Act [4] 3. Limited Impact of Biosecure Act: Even if the Biosecure Act is passed, its impact on business operations may be limited as it does not mention specific companies like WuXi Apptec or WuXi Bio. The legislation aims to create a list of "biotechnology companies of concern" (BCCs) based on evidence, allowing companies to contest their designation [4][5] 4. Out-Licensing Agreements: Concerns regarding out-licensing deals for Chinese innovative drugs facing geopolitical risks are acknowledged, but the report argues that these agreements create mutual value for both Chinese companies and their overseas partners. Licensing deals are not subject to tariffs, unlike physical products [5] 5. Investor Sentiment: Some investors have expressed concerns about the potential impact of geopolitical risks on out-licensing deals, but the report suggests that the actual impact may not be material due to the mutual benefits of these agreements and the ongoing opposition from multinational pharmaceutical companies to restrictions on such deals [5] Additional Important Content - The report emphasizes the uncertainty surrounding the passage of the Biosecure Act and the potential for increased volatility in the China healthcare sector due to geopolitical tensions [1][4] - The report also highlights the lack of recent commentary from the House China Committee on biotechnology, indicating a possible shift in focus or priorities [4] This summary encapsulates the critical insights and implications for the China healthcare sector as discussed in the J.P. Morgan research report.