Technicians detect a non-alcohol drink made of bamboo in a biotechnology company in Anji County, east China's Zhejiang Province, June 3, 2016. Photo: Xinhua

Chinese biotechnology firm WuXi AppTec on Sunday refuted the proposed US Biosecurity Act, which prohibits US federal agencies from having contracts with a number of Chinese biotech firms due to "alleged complicity with the Chinese military," calling it a false accusation. 

The politically motivated act, as part of the extended US crackdown on Chinese companies, has targeted Chinese biotech companies, including WuXi AppTec, BGI Group, MGI and Complete Genomics, citing so-called national security reasons.

The bill sparked a sell-off in shares of some of those companies in recent days. But it hit a delay in the Senate recently, Reuters reported, citing a Senate aide and three other sources on Friday.

This move marked the latest development of the act after a select committee of the US House of Representatives recently drafted the bill, which is widely considered an extended US crackdown on Chinese companies in the field of biotechnology.

In a statement that WuXi AppTec released on Sunday, the company stressed that it does not engage in human genomics business nor does it collect human genomic data in any of its existing businesses.

Additionally, the company has no affiliation with any government or military organizations, it stated.

The company has not posed, does not pose and will not pose any national security risk to any country, and thus should not be predefined as a "biotechnology company of concern" in the draft legislation, according to the statement.

The company said last week that the corresponding content about companies contained in the draft act is neither appropriate nor accurate, and it is "closely watching" the development of the bill, the company said in a filing to the Shanghai bourse.

As a result of the allegation, WuXi AppTec's stock suffered consecutive slumps after the act was proposed on January 25. The share price fell from 73.96 yuan ($10.38) at the opening on January 25 to 50.22 yuan at the close on Friday.

The company said that it had noted the recent fluctuations of its stock prices and trading volumes. Despite the fluctuations, the company's board of directors confirmed that the company's production and operations are all normal, with no significant changes in its day-to-day operations.

BGI Group also rebutted accusations contained in the recently proposed US Biosecurity Act in an official statement sent to the Global Times on January 31.

BGI said that "assertions that BGI has participated in the collection, storage, or analysis of personal genetic information for the purpose of infringing on human rights are false."

Global Times