Investing.com -- Shares of Waters Corp . (NYSE: NYSE:WAT) tumbled 5% today, as the U.S. Commerce Department announced new export controls on biotechnology equipment, citing national security concerns. The new regulations, which aim to prevent the use of U.S. technology by China in military applications, including artificial intelligence and biological weapons, have sparked a selloff in the biotech equipment sector.
The Commerce Department's restrictions, detailed on Wednesday, specifically target high-parameter flow cytometers and certain mass spectrometry equipment. These devices are critical in generating biological data that could be used in AI and biological design tools. The new measures require U.S. licenses for shipments to China and other specified countries, which could potentially disrupt the sales and supply chains of affected companies.
Waters Corp., known for its specialized analytical instruments, is among several companies in the sector experiencing stock declines. Others include Danaher (NYSE: NYSE:DHR), down 1.7%, Thermo Fisher Scientific (NYSE: NYSE:TMO), down 2%, Agilent Technologies (NYSE: NYSE:A), down 3%, Illumina (NASDAQ:ILMN), down 2.7%, Abbott, down 1.3%, and Bruker (NASDAQ:BRKR), down 4%.
This move by the U.S. government is part of a broader strategy to restrict the flow of American technology to China. Earlier efforts included further limitations on AI chip and technology exports, reflecting a growing effort to maintain U.S. dominance in critical technology sectors globally. The measures also coincide with legislative proposals aimed at protecting Americans' personal health and genetic information from foreign adversaries and reducing U.S. biopharmaceutical reliance on China.
Last week, U.S. lawmakers urged the Commerce Department to consider additional export restrictions on biotechnology to the Chinese military. This follows calls in August for the Food and Drug Administration to increase oversight of U.S. clinical trials in China, highlighting concerns over intellectual property theft and human rights issues.
The Chinese Embassy in Washington has responded to these developments by stating that China "firmly opposes any country's development, possession or use of biological weapons." However, the U.S. actions reflect ongoing concerns about the potential military applications of biotechnologies and the safeguarding of U.S. technological advantages.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.