In these troubled times of U.S.-China tensions, sometimes being a copycat has its benefits.
That’s the biggest takeaway for investors in China’s bustling drug sector, which has become the latest target of a U.S. campaign to block the export of its cutting-edge technologies to Chinese firms that may have military ties. The U.S. campaign dates back to the days of previous U.S. President Donald Trump, whose administration began using several government-maintained blacklists to block American companies from selling their products to China.
That effort has been mostly limited to tech companies so far, with heavily hobbled former telecoms superstar Huawei Technologies as the post child of what can happen when a company lands on one of the blacklists. But in a major development, the current administration of U.S. President Joe Biden has indicated it will expand the campaign to drug developers as well.