China Bans Illumina’s Gene Sequencers Amid Escalating Trade Sanctions
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A technician handles an Illumina Advantage High Output Reagent Cartridge as they use a NextSeq 550 System benchtop sequencer to test samples inside a Covid-19 Genome Sequencing Laboratory at the Institute of Liver and Biliary Sciences in New Delhi, India, on Dec. 3, 2021. Photo: Bloomberg
China has banned Illumina, the U.S. genomics giant, from exporting gene sequencing machines to the country, escalating sanctions imposed last month when the company was added to Beijing’s Unreliable Entity List.
The move is expected to accelerate domestic alternatives in the gene sequencing industry.
Illumina, a dominant player in the global gene sequencing industry, has been a major supplier in China since entering the market in 2005. It once held a near-monopoly in the country’s gene sequencing sector before Chinese rival MGI Tech Co. Ltd. emerged in 2015 as a competitor. Since then, the two companies have battled for market share in China while engaging in global patent disputes.
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- China has banned U.S. genomics company Illumina from exporting gene sequencing machines, accusing it of market discrimination, which accelerates China's push for domestic alternatives in the gene sequencing industry.
- Illumina, once a dominant force, now faces competition from China's MGI Tech Co. Ltd.; as of 2021, it had over 1,700 machines in China but saw a 23% revenue drop in 2024's third quarter.
- China's sanctions are expanding amid U.S. trade tensions, potentially affecting related OEM firms and prompting Illumina to assess the impact while seeking solutions.
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Who’s Who
- Illumina
- Illumina is a U.S. genomics giant and major global gene sequencing player. It held a near-monopoly in China's gene sequencing sector until domestic competitor MGI Tech emerged. Recently, China banned Illumina from exporting its machines to address market violations. This restriction is expected to boost China's domestic technology and self-sufficiency, affecting Illumina's market presence and financial performance in China.
- MGI Tech Co. Ltd.
- MGI Tech Co. Ltd., a Chinese firm, emerged in 2015 as a competitor to Illumina in China's gene sequencing sector. The company's equipment has been increasingly adopted locally, with firms like Genesis transitioning to MGI's machines by 2017. MGI's growth has contributed to China's push for technological self-sufficiency, as it offers an alternative to foreign technology in the gene sequencing industry, especially after Illumina faced export bans from China.
- Genesis (Beijing) Co. Ltd.
- Genesis (Beijing) Co. Ltd. is a Chinese gene sequencing company that has shifted to using MGI's machines since 2017, after testing them extensively. The company's CEO, Tian Geng, mentioned that many Chinese firms have been developing domestic alternatives to foreign gene sequencing technologies over the past five years.
- Berry Genomics
- Berry Genomics is an original equipment manufacturer that produces Illumina-branded devices under licensing agreements. An example is the NextSeq CN500, a sequencing instrument developed in collaboration with Illumina to meet Chinese clinical needs. However, with China's ban on Illumina exports, companies like Berry Genomics might face significant challenges due to their reliance on these partnerships.
- Salus BioMed
- The article mentions Salus BioMed as a major player in the next-generation sequencing machines industry. However, it provides no further details about the company.
- GeneMind Biosciences Inc.
- GeneMind Biosciences Inc. is a major player in next-generation sequencing machines. In August 2023, the company completed a C-round financing of nearly 400 million yuan ($54.9 million), indicating significant investment and interest in their technology within the gene sequencing industry.
- Fapon Biotech Inc.
- Fapon Biotech Inc. is mentioned as one of the major players in the next-generation sequencing machines industry in China.
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What Happened When
- 2005：
- Illumina entered the Chinese market as a major supplier of gene sequencing machines.
- 2015：
- Chinese rival MGI Tech Co. Ltd. emerged as a competitor to Illumina in China's gene sequencing sector.
- 2017：
- Genesis (Beijing) Co. Ltd. transitioned to using MGI's gene sequencing machines after data quality improved.
- 2021：
- Illumina had over 1,700 installed sequencing machines in China, making up more than 10% of its global installations.
- 2022：
- Illumina launched its first domestic production facility in China.
- 2023：
- Illumina expanded its domestic production facility in China.
- August 2023：
- GeneMind completed a C-round financing of nearly 400 million yuan ($54.9 million).
- September 2024：
- China's Foreign Ministry froze the assets of several U.S. companies and banned transactions with local entities.
- 2024 (Third Quarter)：
- Illumina's revenue in China fell by 23% year-on-year to $75 million.
- February 2025：
- Illumina announced it was conducting an assessment of the impact of the ban and seeking solutions.
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