The U.S. International Trade Commission (USITC) has initiated two investigations concerning China’s trade practices, focusing on the biotechnology sector and the potential revocation of China’s Permanent Normal Trade Relations (PNTR) status.
The first investigation, titled “Impact on U.S. Industry of China’s State Support and Pricing Practices in the Biotechnology Sector,” aims to assess how Chinese state support and pricing strategies in biotechnology fields—such as genomic sequencing, synthetic biology, and active pharmaceutical ingredient manufacturing—affect the competitiveness of U.S. industries. The USITC plans to publish its findings by January 22, 2027. A public hearing is scheduled for May 27, 2026, with deadlines for participation requests and submissions outlined in the commission’s notice. ([usitc.gov](https://www.usitc.gov/press_room/news_release/2026/er0226_68211.htm?utm_source=openai))
Concurrently, the USITC is examining the economic implications of revoking China’s PNTR status. This investigation, “Effects on the U.S. Economy of Revoking China’s Permanent Normal Trade Relations Status,” will evaluate the potential impact on the U.S. economy, industries, and product sourcing over a six-year period. The commission expects to release its report by August 21, 2026. ([usitc.gov](https://www.usitc.gov/press_room/news_release/2026/er0226_68210.htm?utm_source=openai))
These investigations occur amid evolving U.S.-China trade relations. In January 2025, bipartisan legislation was introduced to revoke China’s PNTR status, aiming to address concerns over China’s trade practices and their impact on American workers and national security. ([chinaselectcommittee.house.gov](https://chinaselectcommittee.house.gov/media/press-releases/moolenaar-introduces-first-bipartisan-bill-to-revoke-china-s-permanent-normal-trade-relations?utm_source=openai))
In the biotechnology sector, the landscape is shifting. The average upfront value for licensing deals between Western biopharmaceutical companies and Chinese counterparts increased by 230% from $52 million in 2022 to $172 million in early 2026. This trend indicates that China is no longer viewed as a “bargain basement” for biopharma licensing, reflecting its growing prominence in the global biotech industry. ([fiercebiotech.com](https://www.fiercebiotech.com/biotech/analyst-china-no-longer-bargain-basement-biotech-acquisitions?utm_source=openai))
These developments underscore the complex and evolving nature of U.S.-China trade relations, particularly in high-tech and strategic sectors. The outcomes of the USITC’s investigations could have significant implications for future trade policies and the competitive dynamics between the two nations.