US Lawmakers Target Merck and AbbVie Over China Drug Trials—Here’s Why It Matters for Every American

A bipartisan group of US lawmakers has just opened a major national security investigation into five of the world’s biggest drugmakers, including Merck and AbbVie.

The concern? According to a detailed report from Reuters, these pharmaceutical giants have been running clinical drug trials in China – and lawmakers are worried that those trials may have helped fuel China’s military capabilities.

This isn’t just a routine congressional inquiry. This is a high-stakes probe that touches on patient safety, national security, corporate ethics, and the increasingly tense relationship between the world’s two biggest economies. And it could have far-reaching consequences for Americans who rely on life-saving medications developed through global research.

So what’s really going on here?

According to Reuters, the investigation is being led by Republican Representative John Moolenaar of Michigan, who chairs the House Select Committee on China. In letters dated Monday and first reported by Reuters on Tuesday, Moolenaar and his colleagues demanded that Merck and AbbVie provide detailed information about their clinical trial sites in China by July 17.

The committee specifically wants to know about due diligence processes, data protection measures, and other ethical standards at trial locations—particularly in the Xinjiang region and at military hospitals.

But here’s the key detail that makes this story so explosive:

Reuters reports that the letters explicitly state there is “no evidence” that Merck or AbbVie has engaged in illegal activity or wrongdoing. So this isn’t an accusation of criminal behavior—it’s a warning about potential risks. The committee is essentially saying: Even if you haven’t broken any rules, conducting trials in China exposes American companies to serious ethical and security dangers.

What are those risks?

First, there’s the concern about intellectual property. Reuters notes that the committee warned that conducting research at Chinese military hospitals puts “cutting-edge, biotechnology intellectual property of American companies at potential risk of being transferred to the Chinese military.” In plain English: American drug companies are effectively handing over their most valuable research secrets to a potential adversary.

Second, there are serious ethical questions. The letters referenced the Uyghur Forced Labor Prevention Act of 2021, which reflects concerns about forced labor practices in Xinjiang. The committee is asking whether drug companies can truly ensure that their operations in that region are completely free from any ethical violations.

The numbers are staggering, according to Reuters:

Since 2005, Merck has sponsored or collaborated on a massive 224 clinical studies in China – including at least 31 trials in Xinjiang and 40 at Chinese military hospitals. AbbVie, meanwhile, has sponsored more than 100 studies in China since 2007, including 17 sites in Xinjiang and 16 at military centers.

Reuters also reports that the committee sent similar letters to three other major drugmakers: Eli Lilly, Pfizer, and Bristol Myers Squibb. The fact that five of America’s biggest pharmaceutical companies are now under scrutiny shows just how seriously lawmakers are taking this issue.

The broader picture is even more alarming, as Reuters explains:

China has transformed itself into the cheapest and fastest place in the world to run early-stage human drug trials. By 2024, the US share of global early drug development programs had dropped from 48% in 2015 to around 37%. Meanwhile, China’s share has skyrocketed from just 8% to over 32%.

Reuters also highlights that global drugmakers signed a record $138 billion worth of deals in 2025 to license Chinese experimental medicines. That’s a staggering amount of money flowing into China’s biotech industry.

Here’s the unique perspective that really matters:

What this story is really about isn’t just clinical trials or corporate compliance. It’s about America’s growing realization that it may have given away too much of its competitive edge in biotechnology—one of the most critical industries of the 21st century.

Think about it this way: For years, American drug companies chased lower costs and faster trial timelines by outsourcing research to China. It made perfect business sense. But now, lawmakers are asking whether that short-term profit came at the expense of long-term national security.

The Reuters report makes it clear that this isn’t a partisan issue. It’s a bipartisan investigation, which means both Democrats and Republicans are deeply worried about the same thing: that American innovation is being transferred to a strategic rival, and that American patients may eventually pay the price.

What are the companies saying?

Reuters reports that Merck responded by saying patient safety and ethical integrity are priorities of its clinical research program and that it follows all global guidelines. AbbVie declined to comment. Pfizer declined to comment beyond confirming it received the letter. Bristol Myers and Lilly haven’t responded yet.

Meanwhile, a spokesperson for China’s embassy in the US dismissed the committee’s actions as having “nothing credible” and accused the US of politicizing trade and tech issues.

So what happens next?

The companies have until July 17 to respond. The committee wants detailed information about their due diligence processes, data protection protocols, and how they ensure informed consent from trial participants.

But Reuters also reports that this investigation is just the latest sign of growing US government concern. There’s already a bipartisan bill sponsored by Moolenaar – the Biotech Investment National Security Act – that would require outbound US biotechnology licensing deals, joint ventures, and equity investments in China to undergo strict national security review.

If that legislation passes, it could fundamentally change how American drug companies do business globally.

Here’s why every American should care:

The drugs you take – whether for cancer, heart disease, arthritis, or countless other conditions – may have been developed through clinical trials conducted overseas. If those trials are compromised by ethical violations or if valuable research is siphoned off to foreign militaries, the safety and effectiveness of those medications could be at risk.

Reuters has done excellent reporting on this developing story, and it’s clear that this is just the beginning. The investigation could lead to new regulations, new restrictions, or even criminal penalties for companies that fail to protect American interests.

The bottom line, based on Reuters’ reporting:

American drugmakers are caught between two powerful forces: the profit motive that drives them to seek cheaper trial locations and the national security imperative to protect American innovation. The Merck and AbbVie investigations are the latest front in a broader battle over who will control the future of biotechnology—and the stakes couldn’t be higher.

Credit: This analysis is based on reporting by Reuters, which first broke the story of the congressional investigation into Merck, AbbVie, and other drugmakers over their clinical trials in China. For the full story and ongoing updates, visit Reuters.com.