China vows stronger biotech support as deals with global pharmaceutical giants surge
Chinese developers signed one-third of all agreements with global drug firms in the first half of 2025
“The biopharmaceutical industry is both a strategic emerging sector and vital to public health,” he said during an inspection in Beijing on Wednesday, as reported by the state-run Xinhua News Agency.
“Efforts should be made to strengthen original innovation, address core technological challenges and mobilise resources from the government and market to achieve breakthroughs quickly.”
Li also urged research institutes to focus on global frontiers and critical areas, while training top talent to establish a solid foundation for the sector’s development.
His remarks came as Chinese biotech developers continue to sign increasing numbers of out-licensing agreements with multinational pharmaceutical companies.
Out-licensing involves biotech firms selling drug candidates, which have often completed Phase I and II trials in China, to global partners.
Chinese drug developers have widely adopted the model to ease financial pressures in an industry where embracing new therapeutic approaches has proven cash-intensive and carries a high risk of failure. With China’s healthcare system largely government-funded, steep price cuts under its national insurance scheme also limit domestic profitability.