McDermott Will & Schulte, a global law firm

A recent roundtable discussion at our Paris office explored the evolving role of China in the global biotechnology ecosystem and the opportunities it presents for European life sciences companies and investors. The session focused on how organisations can access Chinese innovation, accelerate clinical development, structure cross-border transactions to maximise value, and navigate the regulatory, intellectual property and geopolitical considerations that increasingly shape China-related deals.

The discussion brought together leading voices from across the biotech and investment landscape, including Selwyn Ho (Chief Executive Officer, Signadori Bio), Franck Le Deu (Venture Partner, Aulis Capital), Frédéric Scaerou (Head of Global Business Development, Servier), Zhizhong Yao (Partner, Sofinnova Partners) and Jinlong Yue (Partner, Cenponts Healthcare). Drawing on their experience in biotechnology, venture capital, pharmaceutical partnering and international transactions, the panel shared practical insights on building successful partnerships and unlocking growth opportunities in China’s rapidly evolving biotech market.

The discussion reflected a notable shift in industry sentiment: the question is no longer whether China matters to global biotech, but how companies should engage with China’s rapidly evolving innovation ecosystem. Participants broadly agreed that China’s emergence as a biotechnology powerhouse is structural, supported by government policy, talent repatriation, AI-enabled infrastructure, large-scale clinical capabilities, and a highly competitive innovation culture.

While geopolitical concerns remain significant, they are increasingly influencing transaction design rather than preventing deals altogether. Europe was repeatedly identified as a natural partner for Chinese biotech companies seeking global expansion, creating opportunities for cross-border collaborations that combine Chinese innovation and development speed with European commercialization expertise and market access.

At the same time, participants cautioned that the economics underpinning the biotech ecosystem remain heavily dependent on Western markets, particularly the United States, and that pricing pressures could threaten long-term innovation incentives globally.

Below we outline key takeaways for European life sciences companies and investors.

China’s biotech rise is structural and policy-driven

Participants viewed China’s biotech growth as a long-term structural trend rather than a cyclical phenomenon. Government support has elevated biotechnology to a strategic national priority, supported by five-year plans, investment in innovation clusters, modern research infrastructure, AI capabilities, and the return of internationally trained scientific talent.

China’s scale provides advantages across talent, patient access, manufacturing, data generation, and commercialization that are difficult for other jurisdictions to replicate.

China’s competitive advantage is increasingly execution rather than simply cost

The discussion repeatedly returned to China’s ability to execute quickly. Participants argued that the bottleneck in biotech is often not scientific ideas but the ability to translate those ideas into proof-of-concept and clinical data.

China’s strengths include:

• Faster decision-making and development timelines
• Highly competitive operating environments
• Strong engineering and execution capabilities
• AI-enabled research and development processes
• Significantly lower development costs in certain settings

Several participants suggested China can generate early clinical data in a fraction of the time and cost required in Europe.

China is evolving from a source of efficiency to a source of innovation

While China initially gained prominence through speed and cost advantages, participants noted growing confidence in the quality of Chinese science and innovation.

Chinese companies are increasingly developing differentiated assets rather than simply following global trends. The discussion highlighted growing innovation capacity in academia, biotech companies, AI-enabled drug discovery platforms, and advanced research infrastructure.

Clinical development in China offers meaningful acceleration opportunities

China’s patient recruitment capabilities were viewed as a major strategic advantage, particularly in oncology and other high-incidence disease areas.

Participants cited recruitment rates that can substantially exceed those seen in Europe and North America. However, most agreed that global development programs generally require more diverse patient populations and cannot rely exclusively on Chinese clinical data. Hybrid trial strategies involving China alongside jurisdictions such as Australia remain common.

Europe is uniquely positioned as a partner for Chinese biotech expansion

A recurring theme was the complementary relationship between China and Europe.

Chinese companies increasingly seek:

• Global commercialization capabilities
• International regulatory expertise
• Access to Western capital markets
• International credibility and partnerships

Europe benefits from:

• Access to innovative assets
• Faster development pathways
• Cost efficiencies
• New sources of pipeline replenishment

Participants frequently characterized this dynamic as a potential “win-win-win” scenario for Chinese innovators, European partners, and ultimately patients.

Deal structures must be tailored to strategic objectives

Licensing remains the easiest and most familiar model for many organizations. However, Newcos and increasingly sophisticated structures are being used to align incentives, manage geopolitical risks, and preserve long-term value.

The most successful deals begin with a clear understanding of what each party wants to achieve and where strategic interests overlap.

Intellectual property remains central to value creation

Participants emphasized the importance of robust intellectual property strategies, clear ownership structures, and strong patent protection in cross-border collaborations.

While scientific publication and knowledge sharing continue to be fundamental drivers of global biotech innovation, several speakers observed a growing tendency to delay disclosure of early-stage innovations. As competition accelerates, organizations are placing greater emphasis on execution as the way to protect proprietary developments.

Geopolitical risk is becoming a design consideration rather than a deal stopper

Despite growing attention to issues such as the BIOSECURE Act, foreign investment screening, data localization requirements, and supply-chain concerns, participants generally agreed that geopolitical developments have increased complexity rather than prevented transactions.

Companies are increasingly structuring around geopolitical constraints rather than withdrawing from China-related opportunities altogether.

The consensus view was that careful planning, diligence, and governance arrangements can often mitigate many perceived risks.

Global biotech economics remain dependent on Western markets

Several participants observed that many Chinese biotech companies remain reliant on international markets for sustainable returns.

Although China provides scale and innovation capacity, pricing dynamics within China often do not support the economics required for long-term biotech innovation. The United States remains the dominant source of pharmaceutical revenues – and not only for Chinese biotechs – despite representing only a small percentage of the global population.

As a broader comment, participants warned that significant downward pressure on US or global drug pricing could undermine investment incentives, reduce venture capital formation, and ultimately weaken innovation across the sector.

The strategic debate has shifted from “whether” to “how”

The strongest consensus emerging from the discussion was that China is becoming an increasingly important component of global life sciences strategy.

For many companies, the focus is no longer whether to engage with China, but how to structure partnerships, allocate rights, manage geopolitical risk, protect intellectual property, and capture value in a way that supports long-term global growth.