China Biotech Rout Shows Growing Pain From U.S. Decoupling Drive

Following U.S. President Joe Biden’s executive order to bolster domestic biomanufacturing and lower reliance on foreign companies, bellwether Chinese stocks tumbled Tuesday in Hong Kong.

(Bloomberg) — The latest U.S. effort to reduce reliance on China is striking hard at the nation’s biotech stocks as investors price in more decoupling between the world’s two biggest economies.

Following U.S. President Joe Biden’s executive order to bolster domestic biomanufacturing and lower reliance on foreign companies, bellwether Chinese stocks such as Wuxi Biologics Cayman Inc. and WuXi AppTec Co. tumbled at least 16% Tuesday in Hong Kong.