The Next Frontier Where China Will Overtake the US: Biopharmaceuticals Chinese biopharmaceutical companies—including those focused on innovative drugs—have recently secured numerous high-value international technology partnership agreements (specifically "license-out" deals). They are experiencing a rapid, transformative rise, evolving from "low-cost suppliers" into "sources of global innovation." In the first half of 2026 alone, the licensing-out of Chinese innovative drugs demonstrated explosive momentum, with 81 deals concluded totaling approximately $110 billion—a figure representing about 80% of the entire previous year's transaction volume. R&D Pipeline Scale. By early 2026, China accounted for 31% of the global drug R&D pipeline. With over 1,250 new drugs under development, China has far surpassed the European Union's aggregate level and is rapidly closing the gap with the United States (which has approximately 1,440 drugs in development). Surpassing in R&D Investment. A report titled "Science and Technology Indicators 2026" by Japan's Ministry of Education, Culture, Sports, Science and Technology (MEXT) indicates that China has, for the first time, surpassed the United States in total R&D investment to rank first globally (with 2024 investment reaching 97.1 trillion yen, or approximately 4.15 trillion RMB). Technological Platform Advantages. China has established a commanding lead in the field of antibody-drug conjugates (ADCs); by the end of 2025, domestic Chinese pharmaceutical companies accounted for 40%–50% of the global ADC clinical pipeline, ranking first worldwide. R&D and Clinical Trial Speed. Leveraging a vast patient population and an efficient industrial ecosystem, China is achieving R&D and clinical speeds three times faster than the West at half the cost; notably, in 2025, China conducted 55% of the world's oncology clinical trials. From a technological perspective, Chinese pharmaceutical companies have moved beyond merely imitating Western drugs ("fast-following"). Instead, by leveraging cutting-edge fields—such as monoclonal antibodies, bispecific antibodies, ADCs, GLP-1, and cell therapies—and adopting differentiated approaches (e.g., novel linkers and non-standard payloads), they have transformed from domestic "followers" into global "peers" and, in some areas, even "leaders." Multinational corporations (MNCs)—such as Pfizer, Merck & Co. (MSD), and GSK—have actively sought partnerships with Chinese firms, sparking a wave of "shopping-spree-style" collaborations: • Innovent Biologics and Pfizer (May 2026): The two parties signed a massive global collaboration agreement with a potential total value of up to $10.5 billion. Pfizer made an initial payment of $650 million, covering 12 early-stage oncology projects that include antibody-drug conjugates (ADCs) and multispecific antibodies. • 3SBio and Pfizer (May 2025): 3SBio granted Pfizer the global rights (excluding China) for the development, manufacturing, and commercialization of its proprietary PD-1/VEGF bispecific antibody, SSGJ-707. The deal featured a landmark upfront payment of $1.25 billion and a total transaction value of $6 billion, setting a new record for upfront payments in Chinese innovative drug business development (BD). • Hengrui Medicine and GSK (2025): The collaboration agreement reached between the two parties exceeded $12 billion in total transaction value, further highlighting the global appeal of established Chinese pharmaceutical leaders as they transition toward innovative drug development. • Innovent Biologics and Takeda Pharmaceutical (2025): The two companies entered into a major partnership with a total agreement value of up to $11.4 billion. • Pregene and Gilead Sciences (Kite Pharma, 2025): The two parties entered into a collaboration in the field of *in vivo* *in situ* editing therapies. The agreement, valued at a total of $1.64 billion, set a record for the highest-value out-licensing deal in China's *in vivo* CAR-T (cell therapy) sector.