C&EN: "House bill targets some Chinese outsourcing firms"

This news (that I somehow missed) from friend of the blog Michael McCoy: 

The stock prices of the pharmaceutical outsourcing providers WuXi AppTec and WuXi Biologics were pummeled after a US House of Representatives committee introduced a bill that would restrict federally funded medical providers from using several Chinese outsourcing firms.

Based in Shanghai, WuXi AppTec is a top drug service provider and one of the world’s largest employers of chemists. WuXi Biologics is a separate company that WuXi AppTec spun off in 2017. The bill also mentions the private genomics firm BGI Group.

The draft bill, from the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party, cites US national security concerns. It says WuXi AppTec has sponsored “military-civil fusion” events in China and received investments from a military-civil integration investment fund.

The bill also says WuXi Biologics CEO Chris Chen was previously an adjunct professor at the People’s Liberation Army Academy of Military Medical Sciences. Similar legislation has been introduced in the Senate.

WuXi AppTec says in a stock market announcement the findings stated in the draft bill are not accurate. “We are confident that the business development of WuXi AppTec will not pose a security risk to any country,” it says. In its own announcement, WuXi Biologics says the bill references a courtesy designation that Chen received after a guest lecture in 2013.

The language of the draft bill states the following (I think I got the key section): 

The head of an executive agency may not procure or obtain any biotechnology equipment or service produced or provided by a biotechnology company of concern; or enter into a contract or extend or renew a contract with any entity that uses biotechnology equipment or services produced or provided by a biotechnology company of concern and acquired after the applicable effective date in subsection (c) in performance of the contract; or enters into any contract the perform-19 ance of which will require the direct use of biotechnology equipment or services produced or provided by a biotechnology company of concern and acquired after the applicable effective date in subsection (c). 

I have to say, I am pretty unimpressed with this. First, it will never make it out of Congress. Second, what federal organizations contract with WuXi for drug development services? None of them, I bet. Finally, Congress isn't dumb enough (I think) to say "welp, Merck (or whoever), you're just going to have to stop doing business with WuXi." This is a bluff, and a stupid one.