The International Trade Commission announced it will launch an investigation into Chinese state support in the biotechnology sector, as part of two new inquiries aimed at examining U.S.-China trade relations. The agency stated that these investigations were initiated under Section 332 of the Tariff Act of 1930, with a focus on China. 
The first investigation will assess the potential impact of revoking permanent normal trade relations with China. This would involve removing China's most-favored-nation tariff treatment and allowing the U.S. to impose targeted tariffs on Chinese exports. Previously, the Trump administration had implemented country-specific reciprocal tariffs, but these measures were recently overturned by the Supreme Court. The International Trade Commission noted in a press release that this investigation will be expedited, with a final report expected by the end of August.
The second investigation will analyze how Chinese state support and pricing practices in the biotechnology sector affect U.S. companies. Officials plan to examine subsidies in areas such as genomic sequencing, synthetic biology, and pharmaceutical ingredient manufacturing, with a report expected early next year. Section 332 investigations typically do not directly propose policy recommendations, but companies can use the reports to initiate countervailing duty or anti-dumping cases, which could lead to tariff measures.
China is striving to become a global leader in the biotechnology field. In 2022, Beijing released its first industry-specific five-year plan for the bioeconomy, covering areas such as bio-agriculture, biopharmaceuticals, bio-manufacturing, and biosecurity. According to a U.S. Department of Agriculture report, these goals include advancements in genomics, crop hybridization, and pest control.
However, analysis by the Mercator Institute for China Studies indicates that China's biotechnology industry still lags behind the United States and Europe. In 2024, China's share of the global biotechnology market was approximately 5%, compared to 35% for the U.S. and 31% for Europe. To bridge the gap, Beijing has offered preferential policies to high-tech enterprises, such as priority access to capital.
China's biotechnology market is primarily driven by the healthcare sector, with agriculture accounting for about 10%. For example, China dominates the supply chain for biochemical compounds like amino acids and vitamins, controlling roughly 68% of the global amino acid market and about 75% of the vitamin market. Representatives from the U.S. feed industry have long complained that state support gives China a competitive advantage in international markets, potentially distorting competition. A report by the Institute for Feed Education and Research found that in 2024, prices for vitamins from Chinese companies were about 34% lower than those of international competitors.
Constance Cullman, CEO of the American Feed Industry Association, told reporters late last year: "The association has been actively raising this issue with members of Congress, as well as officials from the U.S. Department of Agriculture, the White House National Security Council, the Office of the U.S. Trade Representative, and the Department of Commerce's Supply Chain Center."
