Rising tensions with Washington have made it harder for China to bring its biotech advances to the US. For Europe, though, this is less a problem and more an opening. Europe’s political and regulatory climate is different from America’s. That difference is now making European companies the partners of choice for Chinese biotech firms looking to go global.
China now develops 30% of all new therapies worldwide, placing it among the global leaders in biomedical innovation.
For European companies and investors, the path is clear. Chinese firms aren’t just looking to license out assets for quick cash. They want partners who bring clinical trial know-how, regulatory experience, and access to patients. This makes Europe a key part of the system that turns Chinese science into global products. As Emmanuelle Trombe, a partner at McDermott, put it, “They consider that Europe has not just a commercial value, but also has value in terms of clinical development.”
Deal structures are changing to fit this new reality. The old model—Western companies paying upfront for rights outside China—is being replaced by more joint approaches. The NewCo model, for example, moves assets into new companies that raise money internationally. Chinese owners keep a stake, while Western investors add both cash and expertise. Anthony Paronneau, another McDermott partner, says Chinese companies now want to keep equity in these ventures and get a bigger share of the upside. This shift lines up the interests of both sides and pushes them to grow the global value of each asset. A Janus Henderson industry review says the NewCo model is now seen as a solid way to turn Chinese biotech assets into money, with Chinese firms usually getting equity instead of just upfront payments and royalties.
European pharmaceutical companies have publicly warned of losing competitiveness compared to the US and China, highlighting that Europe spends about 1% of its GDP on pharmaceuticals, while the US spends 2% and China 1.8%.
For European investors, the real question isn’t whether to “invest in China.” It’s whether to invest alongside Chinese innovators in assets built for the global market. The focus is on the basics: quality of science, strength of intellectual property, clinical potential, regulatory path, and the size of the global market. China’s clinical trial speed and patient access can speed up development, but real returns still depend on international markets. This makes cross-border partnerships even more important.
Europe is no longer just a bridge between China and the West. With the right deal—whether it’s NewCo, equity investment, co-development, or co-commercialization—European companies and investors can get real exposure to the value created by Chinese biotech worldwide. The real win isn’t just helping Chinese firms go global, but owning a piece of what makes it across. In this new phase, those who act quickly will help shape the next wave of global biotech—and take a share of the rewards.
