Illumina’s Double-Edged Sword: Navigating US-China Trade Tensions

Illumina has been added to China's "unreliable entity list" in retaliation for US tariffs, potentially facing fines, sanctions, and restrictions1.

The company's stock price dropped about 4% following the news1.

Illumina's revenue from China, Hong Kong, and Taiwan has been declining in recent years, from $502 million in 2021 to $384 million in 20231.

The DNA sequencing industry in China is growing faster than the global market, according to Illumina's estimates1.

Illumina opened its first manufacturing site in China in 2022, with plans to expand local production by 20281.

The BIOSECURE Act, which could prevent US researchers from working with Chinese biotech companies, has stalled in Congress1.

China has imposed new tariffs on various US goods and announced restrictions on exports of raw materials used in high-tech manufacturing1.

Illumina's main Chinese rivals, BGI Genomics and Complete Genomics, have also been targeted by US lawmakers through proposed legislation1.

This analysis highlights how Illumina is caught between the growing Chinese market for DNA sequencing and the escalating trade tensions between the US and China, presenting both opportunities and challenges for the company.

Sources:

1. https://www.fiercebiotech.com/medtech/illumina-caught-tariff-crossfire-china-retaliates