Chinese biotech companies target Europe for growth

12 Chinese companies arrived at Swiss Biotech Day in Basel in May 2026, nearly twice the number recorded a year earlier. At least 15 more joined independently, turning the Swiss industry gathering into a useful test of China’s ambitions in Europe.

The visitors came looking for licensing agreements, investors, manufacturing partners and commercial routes beyond China. Domestic conditions are pushing them outward. Venture capital has weakened, competition has intensified and scrutiny from Washington has increased. European markets offer financing, scientific partnerships and regulatory credibility, although they also demand extensive evidence on quality, data protection and compliance.

The timing matters for Switzerland. Roche and Novartis have signed a growing number of deals to license drug candidates from Chinese biotechnology companies. Swiss pharmaceutical groups can access promising science and lower development costs, while Chinese firms gain a route to global markets and validation from established partners.

That relationship is becoming more competitive as Chinese companies build their own capabilities. According to IQVIA, they accounted for 30% of clinical trial starts, compared with 1% in 2009. Basel’s conference circuit now gives Chinese firms a direct line to the companies, investors and advisers that shape European drug development.

$1.03 trillion went into Chinese research and development in 2024 when measured by purchasing power parity, edging past the United States at $1.01 trillion, according to the OECD. China’s spending rose 12.3% from the previous year.

The investment has expanded the country’s scientific base. China produces more papers in leading scientific journals than any other country in the Nature Index, while universities supply a large pool of science and technology graduates. Government incentives have also encouraged foreign-trained Chinese scientists to return.

Biotechnology has benefited from this policy focus. Beijing has funded manufacturing parks, research clusters and programmes designed to reduce reliance on imported medicines. The result is a larger pipeline of drug candidates and a stronger network of companies able to conduct research, clinical development and manufacturing at home.

Some products have moved beyond the low-cost reputation associated with China’s older pharmaceutical industry. Ivonescimab, a cancer therapy developed by Akeso, has drawn attention after positive head-to-head trial results against a Western-developed blockbuster. Zanubrutinib, the blood cancer treatment developed by BeOne Medicines, has reached annual sales in the single-digit billions of dollars.

For European partners, the pipeline offers new licensing choices. It also forces Roche, Novartis and other established groups to assess Chinese competitors on scientific results rather than on their former reputation for imitation.

79% of 124 surveyed biopharma companies reported at least one contract or product involving a China-based or China-owned contract development and manufacturing organisation, or CDMO. The figure shows how deeply Chinese manufacturing has entered the global supply chain.

Canton Biologics is seeking a larger share of that business. Founder and CEO Xiao Shen established the southern Chinese CDMO in 2016 after studying biological pharmacology in Germany and completing a PhD at EPFL. The company works on complex biological products, including formulation, laboratory development and manufacturing before clinical trials.

Shen says Canton Biologics competes on “speed, quality, flexibility, and cost competitiveness”. Chinese policy changes introduced from 2015 made it easier for drug developers to outsource manufacturing, helping create a dense domestic CDMO market. Investors provided Canton Biologics with seed funding in 2016, and Shen has since raised more than $40 million, approximately CHF 32 million.

Switzerland has its own heavyweight in this field. Lonza, founded more than 125 years ago, is the world’s largest CDMO by revenue. European companies therefore know the commercial value of outsourced biomanufacturing, while Chinese entrants must demonstrate that their cost advantages come with dependable quality systems, transparent governance and reliable delivery across borders.

40% of Canton Biologics’ revenue already comes from overseas markets, and Xiao Shen wants to lift that figure to 80% by 2028. The target explains why he and his management team are attending more than ten conferences in Europe and the United States over six months.

For Chinese biotech companies, international expansion serves several purposes at once. Licensing deals can provide immediate income and fund later research. European partners can help with clinical trial design, regulatory submissions and market access. A presence outside China can also reassure potential customers that a company operates to standards recognised by global drug developers.

The route carries practical obstacles. Companies must navigate European medicines regulation, country-specific reimbursement systems and rules governing clinical data, intellectual property and foreign investment. Political pressure adds another layer. US lawmakers have proposed measures intended to restrict biotechnology cooperation with China, increasing the value of trusted European relationships while raising scrutiny of ownership and supply chains.

Chinese executives therefore arrive in Basel with more than product brochures. They need to show that their science can survive international trials, that manufacturing can meet European expectations and that commercial partnerships will remain workable as governments reassess dependence on Chinese technology.

Roche and Novartis now face Chinese companies as both partners and rivals. Their licensing activity can bring promising medicines into Swiss pipelines, particularly in areas such as oncology where Chinese developers have produced increasingly competitive candidates. The same deals can reveal how quickly China’s firms are closing gaps in discovery, trials and commercial execution.

Switzerland benefits when its research institutions, investors and pharmaceutical companies attract this activity. Basel already provides a concentrated network of global drugmakers, specialist suppliers and scientific talent. EPFL and other Swiss institutions also connect Chinese entrepreneurs with European training and research networks, as Xiao Shen’s career illustrates.

The economic gains will depend on the terms of cooperation. Swiss companies will need rigorous due diligence on clinical data, intellectual property, manufacturing controls and ownership structures. They will also need to manage supply chain exposure and potential changes in European or US policy. Chinese companies, meanwhile, must convert strong trial results and production capacity into medicines that regulators approve and health systems can afford.

Europe is becoming a proving ground for China’s biotech ambitions. Basel’s growing Chinese presence signals a market shift that Swiss pharmaceutical leaders will track closely, through licensing negotiations, research partnerships and competition for the next generation of medicines.