By Karen Freifeld

(Reuters) – A congressional committee targeted on China has launched a invoice that might prohibit federally funded medical suppliers from permitting China’s BGI Group, WuXi Apptec and different biotech firms from getting genetic details about Individuals.

The Home choose committee on China, led by Republican congressman Mike Gallagher, stated the laws unveiled on Thursday is aimed toward BGI Group and its subsidiaries MGI and Full Genomics, together with WuXi Apptec, in keeping with an announcement.

Shares of Wuxi Apptec fell 10% in buying and selling in China following information of the invoice in a single day. The corporate stated on Friday that company-related content material in a proposed U.S. laws on bio-security just isn’t acceptable or correct.

The corporate is “intently watching” the event of the invoice, it stated in a submitting to Shanghai bourse, including that its enterprise improvement won’t pose any safety threat for any nation.

BGI Group stated in an announcement that it helps defending private information, however the laws “which can successfully drive BGI from the U.S. market won’t accomplish this purpose.” The corporate added that within the U.S. it doesn’t acquire affected person samples or have entry to non-public or genetic information.

Comparable laws was launched within the Senate. The invoice has a protracted path ahead earlier than probably changing into regulation.

“Closing this loophole is step one in defending the American bioeconomy and our nationwide safety, and guaranteeing our genomic information is saved protected and safe,” stated Democratic committee member Raja Krishnamoorthi.

The laws would set up a framework to forestall U.S. taxpayer {dollars} going to biotech entities of concern, he added.

It might prohibit the federal government’s Medicare and Medicaid well being packages from utilizing BGI, which might slash its market within the U.S., an individual briefed on the invoice stated.

Items of BGI Group seem on a U.S. Division of Commerce export management checklist over allegations that they pose a “vital threat” to contributing to Chinese language authorities surveillance.

Reuters additionally has reported that BGI was gathering genetic information from hundreds of thousands of girls for sweeping analysis on the traits of populations, and collaborates with China’s navy.