Special Edition: What a Weeklong Trip Reveals about U.S.-China Biotech Competition

Happy Monday!

Atter spending the past week in China, from biotech hub Shanghai to other cities, I have the following dispatches. Shanghai is buzzing, yet the excitement is focused on breakthrough science and local rivalry—not global deal-making.

 Scene from the In Vivo CAR-T Conference

• Relocated to a larger ballroom near Hongqiao after overwhelming demand, the event overflowed with young talent in their 30s and 40s.

• Standout presentations tackled CRISPR off-target risk and advanced drug delivery for in vivo CAR-T therapies, demonstrating China’s rapid progress in technical innovation.

Richard Wang, Shanghai Fosun-Kite’s former GM, identified the underlying real driver: EsoBiotec’s $1 billion acquisition by AstraZeneca. A local biotech startup, EsoBiotec’s ESO-T01 was the first in vivo CAR-T targeting BCMA to enter clinical trials in China. July data showed complete cancer remission with a single, rapid infusion, fueling strategic moves and investor frenzy.

And soon, it attracted attention from AZ and got the acquisition offer.

China’s CAR-T companies, inspired by Nanjing Legend Bio’s global success propelled by J&J, are pivoting hard to in vivo strategies—pushing for faster, scalable therapies.

Business Development Takes a Backseat

• A parallel conference focused on biotech business drew a modest crowd, underscoring that local professionals prioritize clinical innovation over boardroom deals.

• Conversations with BD and venture insiders reinforced that U.S.-China deal flow is accelerating, even as trade tensions mount.

Market Forces and Daily Reality

Shanghai’s relentless traffic jams contrasted with the city’s scientific energy—a sign of both rapid growth and operational friction.

• Against this backdrop, the Trump administration is preparing new executive orders: 100% tariffs and bans on branded drugs from China unless manufactured in the U.S.

Underlying Anxiety

• Industry insiders noted daily creation of new biotech startups, spurred by government pushes for “high quality productive force.”

• Yet competition is fierce, and issues like product counterfeiting—such as fake psoriasis ointments—plague even the most cutting-edge firms.

Key Takeaways

• China’s biotech sector is not just chasing global deals—local innovation and intense rivalry are what truly drive value.

• U.S.-China dealmaking remains strong, but future growth will hinge on policy risks and how talent flows across borders.

• Operational and regulatory challenges (counterfeiting, tariffs) are growing—adaptability and local know-how matter more than ever.

For investors, BD professionals, and founders watching the U.S.-China biotech corridor, the seismic activity beneath Shanghai’s surface is a signal: Expect more speed, more competition, and new hurdles as 2026 approaches.

Thanks for reading,

Brian

Are you making better decisions reading his newsletter?

Consider subscribing and Sharing it and get it directly in your inbox!