Understanding the National Security Commission on Emerging Biotechnology Report

Commentary by Julie Heng

Published April 8, 2025

The comprehensive report from the bipartisan National Security Commission on Emerging Biotechnology (NSCEB) delivers a "sobering, even frightening," conclusion: that China is quickly ascending to biotechnology dominance, having made biotechnology a strategic priority for 20 years. To remain competitive, the report asserts, the United States must take swift action in the next three years. "Otherwise, we risk falling behind, a setback from which we may never recover."

Established by Congress in the FY 2022 Defense Authorization Act, the NSCEB was tasked with examining biotechnology's role in national security and recommending strategies to bolster U.S. leadership. Chaired by Senator Todd Young, the NSCEB report draws on over 1,800 consultations with stakeholders, reviews of classified and unclassified materials, site visits across the United States, and discussions with domestic and international government and technology leaders. In the 18 months following the report's release, the commission will continue to push to implement its recommendations, including seeking new legislation and collaborating with regulatory agencies.

This topic is deeply important, and this commentary breaks down the report's key findings and recommendations.

The National Security Challenge of Emerging Biotechnology

Biotechnology, particularly when powered by AI, can revolutionize critical sectors, from defense and energy to agriculture and manufacturing. Should the United States move quickly to seize this opportunity, it could lead to a biotech-driven transformation-reshoring production of key materials like munitions chemicals, purifying rare earth metals, and growing more food with fewer resources. But if the United States fails to act, the commission warns, biotechnology could also expose vulnerabilities in infrastructure, disrupt supply chains, and contribute to food crises.

China sees this opportunity and has treated biotechnology as a national priority since the early 2000s. China now outspends the United States in biotech research and development (R&D) and leads the world in areas like synthetic biology. Today, up to 90 percent of the most widely used medications in the United States, including ibuprofen and acetaminophen, are imported from China.

China's familiar playbook as a blueprint for biotech supremacy: The report describes how China's approach to biotechnology mirrors its broader strategy for technology and defense leadership-first, it acquires intellectual property from abroad, legally or illegally. Then, state-backed entities scale up these innovations and pump capital into domestic biotech firms to corner and eventually overwhelm global supply chains with low-cost products.

Over the past decade, China has dramatically increased its biotech investments, with biopharma R&D growing 400-fold and the market value of biotech firms surging 100-fold between 2016 to 2021, now reaching a collective value of $300 billion. Companies like WuXi AppTec have emerged as key players in this transformation, with vast international influence. Notably, 79 percent of U.S. pharmaceutical companies now depend on Chinese contract firms for manufacturing. Furthermore, China is continuing a whole-of-government effort to support its domestic industry with financing, regulatory streamlining, and diplomatic support, building out over 100 biotech research parks and 17 industrial clusters.

The U.S. biotechnology ecosystem has many historical strengths, but is falling behind: The United States continues to have significant underlying strengths in biotechnology, including world-class research institutions and longstanding commitments to foundational research: The United States hasmore patents, companies, and Nobel Prize winners in biotechnology than any other country. However, despite these unmatched historical strengths, it is falling behind in this new state-backed competition. As China's investments have surged, federal funding for biotech hasstagnated since the 1960s, and the U.S. regulatory environment makes it harder to commercialize new technologies. To stay competitive, the United States needs a more coordinated, forward-looking strategy.

U.S. policymakers must understand that we are on the cusp of a biotechnology revolution: We are witnessing early glimpses of nothing less than a revolution in biotechnology-advancements like perfluoroalkyl and polyfluoroalkyl substance (PFAS)-absorbing sponges, microbes that help extract critical minerals, and even on-demand production of essential resources like ethanol and blood. AI is alreadyhelping us program cells and predict biological traits-and this is just the beginning.

To ensure the United States leads in this new era, it's crucial to strengthen our biotech ecosystem. Doing so will allow us to support U.S.-based innovation, create domestic jobs, and secure U.S. national security for decades to come.

Report Recommendations to Secure U.S. Biotechnology Leadership

1. Prioritize Biotechnology at the National Level: The commission warns that the United States lacks a unified, proactive, high-level strategy for biotechnology. To remedy this, the report suggests creating a National Biotechnology Coordination Office within the Executive Office of the President to drive interagency efforts. It also calls for the collection of timely, accurate data and forecasting on this key area of technology competition to guide policymakers.
2. Mobilize the Private Sector to Get U.S. Products to Scale: Complex regulations and limited domestic scaling capacity are slowing U.S. efforts to capitalize on the opportunities in this new era of biotech. To capture the benefits and meet the competitive challenge, the report recommends simplifying regulations, adopting measures to attract private investment, and protecting critical biotech infrastructure. Proposals like an "Independence Investment Fund" could help scale up promising biotech startups, while pre-commercial manufacturing facilities could reduce risks and costs to accelerate the development of emerging firms. The government could also require transparency from U.S. companies about supply chain vulnerabilities and limit the use of Chinese biotech suppliers deemed a security threat while providing incentives for U.S.-based firms.
3. Maximize Benefits of Biotech for Defense: Biotechnology has enormous potential to enhance military capabilities, from dynamic camouflage to bio-based energy sources. To harness these innovations responsibly, the commission recommends that the United States define ethical principles for biotech in defense and support of large-scale domestic biomanufacturing.
4. Out-Innovate Our Strategic Competitors: High-quality biological data and research facilities are crucial for biotech innovation. The report urges the United States to treat biological data as a strategic resource. Specifically, it recommends that the Department of Energy (DOE) create a "web of biological data" for researchers to access and recommends blocking China from obtaining sensitive biological data. It also recommends empowering agencies like the Advanced Research Projects Agency-Energy, the Advanced Research Projects Agency for Health, the Defense Advanced Research Projects Agency, and the DOE's national labs to lead grand research challenges in biotechnology.
5. Build the Biotechnology Workforce of the Future: To succeed in bioinnovation, the Commission emphasizes that the United States must revitalize its talent pipeline. Recognizing that increasing bioliteracy will arm the public, students, and workers with the skills needed to navigate and shape the future of biotechnology, the report calls for expanding bioliteracy training across the federal workforce and the domestic workforce, while also attracting and retaining foreign talent.
6. Mobilize the Collective Strengths of Our Allies and Partners: Biotechnology is a global endeavor. The United States must work with international allies, including China when necessary and prudent, to establish standards for biosafety and biosecurity. The report advocates for a two-pronged "promote and protect" strategy, including forming data-sharing agreements and bolstering the security of global supply chains.

Key Conclusions from the NSCEB Report

After 20 years of strategic investment, China is rapidly gaining dominance in biotechnology. To remain competitive, the report argues that the United States has a narrow three-year window to respond. As the report warns, "There will be a ChatGPT moment for biotechnology, and if China gets there first, no matter how fast we run, we will never catch up."

The commission's primary recommendation is clear: To meet this unprecedented challenge, the U.S. government should invest at least $15 billion over the next five years to support the growth and capabilities of the U.S. biotechnology sector. These investments can help leverage private capital and develop private-public partnerships for biotechnology driven by industry and in collaboration with the government. The United States must also streamline the regulatory framework, increase research funding, and help create clearer market signals, particularly at the intersection of AI and biotechnology. With swift and ambitious public investment and a whole-of-government approach, the United States can lead the biotech revolution with all its benefits while protecting national security into the future.

Julie Heng is a research associate with Renewing American Innovation at the Center for Strategic and International Studies in Washington, D.C.

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