Chinese data lockdown snags international pharma collaborations: report

China flag
The broad mandates could snag partnerships with universities, contract researchers and local R&D hubs, and may raise the cost of entry into the Chinese healthcare market. (Shutterstock)

New Chinese data management rules could be tripping up global pharma collaborations and research, according to a report from the Financial Times.

Interviews with lawyers based in China detailed how international companies have major concerns regarding the regulation passed in March, which requires researchers to receive government approval before sharing or exchanging information abroad, including data submissions for foreign academic papers and journals.

The broad mandates could snag partnerships with universities, contract researchers and local R&D hubs, and may raise the cost of entry into the Chinese pharmaceutical market, the report said.

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The new regulations follow another comprehensive cybersecurity law put in place last year requiring that data be hosted on servers on the Chinese mainland.

According to the University of Washington’s Henry M. Jackson School of International Studies, the law requires companies to locally house all personal information and a broad swath of data types gathered or produced in the country.

Meanwhile, on the other side of the Pacific, tariffs on Chinese imports proposed by President Trump threaten to cost the medical device industry billions.

RELATED: Trump tariffs threaten to cost medical device industry billions

While Chinese-manufactured products alone account for a significant minority, the 25% tariffs on pacemakers, orthopedic implants and other devices could also affect Western companies with operations in China.

Estimates of the potential negative impact range from $1.5 billion to as high as $5 billion annually.