Shortly after the Trump administration’s new tariffs against China went into effect, the country responded with levies of its own against multiple U.S. trade sectors—and placed Illumina on a government watchlist.
The DNA sequencing giant was added to an “unreliable entity list” by China’s commerce ministry, alongside the clothing company PVH Corp., owner of brands such as Calvin Klein and Tommy Hilfinger. According to a report by Reuters, the government said the two companies were singled out after taking “discriminatory measures against Chinese enterprises.”
China also opened up an antitrust investigation into Google, despite its services being largely blocked across the country.
Being named to the watchlist opens Illumina up to potential fines and sanctions, as well as other possible restrictions on hiring, sales and other investments. The company’s stock price dipped about 4% on the news.
In recent years, Illumina has boasted of its footprint in China, where it has estimated that the DNA sequencing industry is growing faster than the global market. The company opened its first manufacturing site in the country in 2022, starting with a reagent facility in Shanghai. At the time, Illumina said it planned to expand its localized production to include both instruments and consumables by 2028.
"Illumina has a long-standing presence in China, where we serve the local market through our advances in genomics that help improve human health," the company told Fierce Medtech in a statement. "Wherever Illumina operates, we comply with all laws and regulations. We are assessing this announcement with the goal of finding a positive resolution. In the meantime, we are committed to continuing to serve global health."
Last year, in its earnings report for the 2023 fiscal calendar, Illumina said it had 320 employees in China, Hong Kong and Taiwan, while collecting $384 million in annual revenue from the region. That number has declined year-over-year, compared to 2022's $472 million and 2021's $502 million. For the first three quarters of 2024, the company listed $228 million in sales. Illumina's next earnings report is scheduled for later this week, February 6.
Over the weekend, President Donald Trump announced plans to impose tariffs on China as well as Canada and Mexico—though he delayed the new 25% duties on the North American nations for at least one month.
The U.S. tariffs on China include a broad 10% levy on imported goods. China’s response was more targeted, with 15% tariffs on U.S. coal and natural gas, plus 10% on crude oil and farm equipment as well as larger automobiles and pickup trucks.
The country also said it would place restrictions on its exports of raw materials, such as tungsten, tellurium and other minerals used in high-tech manufacturing.
Illumina’s main DNA sequencing rivals in the country, BGI Genomics and Complete Genomics, have also been targeted by U.S. lawmakers through the BIOSECURE Act. The bill—which stalled in Congress late last year, and has not passed—would prevent federally funded U.S. researchers from working with certain Chinese biotech service providers, including WuXi AppTec and others.
Editor's note: This story has been updated with a statement from an Illumina spokesperson.