China’s 60% Biotech Stock Surge Leaves AI/Tech in the Dust

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WHAT’S INSIDE

  • Tech News: Iran Israel , AI Action Plan, AI Transparency Act, Ukraine Lithium

  • Company Watch: Cohere, Trump Media, Scale AI, AMD, Ramp, Coco Robotics

  • Feature: China’s 60% Biotech Stock Surge Beats AI/Tech

  • Buzzy Tools: Latest Buzzy tech, AI and financial tools

  • Deep Tech: The latest in deep tech, biotech, futurism and more

  • Space Tech: Latest news in the space race and aerospace tech

  • Crypto: Blockchain and crypto policy and startups or protocols to watch

TECH IN THE NEWS

Rebound — Investor sentiment & risk-on rebounded sharply on Monday as fears around the Israel-Iran conflict faded, shifting focus to central bank policy meetings.

Call for CalmTrump announced Iran's interest in de-escalating tensions with Israel. He urges immediate talks, as the U.S. negotiates on Iran’s nuclear program, raising concerns over enrichment levels.

AI Action Plan Unveiled — The Trump admin plans to launch an AI Action Plan on July 4 via ai.gov, focusing on AI integration in government to cut costs and improve efficiency, sparking concerns over data privacy, job automation.

AI Transparency ActNew York lawmakers pass the RAISE Act enforcing transparency for frontier AI models, aims to prevent AI disasters without stifling innovation before a Trump regulation ban in effect.

Ukraine's Lithium LeapUkraine plans to tap private investors for mining a major lithium deposit under a new mineral sharing deal with the U.S..50% of revenues to be reinvested in Ukraine economy rebuild.

Mind Over MatterChina has completed its first clinical trial of a brain-computer interface, allowing a tetraplegic patient to control devices via thoughts. Plans for robotic arm advancements by 2028.

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China’s 60% Biotech Stock Surge Beats AI/Tech

While US investors are busy chasing the next AI unicorn, China has quietly built a biotech rocket. News broke yesterday that China’s Hang Seng Biotech Index has surged more than 60% year-to-date, eclipsing its wider tech sector’s performance (up 22%). It looks a lot like the country’s long underestimated biotech ecosystem has entered its growth phase.

China's boom is happening as much because of policy, as profit. Government subsidies, a streamlined regulatory pipeline, and a national push to bring back scientific talent have coalesced into one of the most efficient drug development environments in the world. At the same time, American biotech, once the darling of innovation portfolios, is stuck in a holding pattern—navigating policy pressure, capital flight, and talent scarcity. It is also a reflection of a wider de-dollarization move with investors increasingly looking at the US as less of a safe-haven and US stocks as more risky and overpriced. 

Fast-Track Approvals and a Growing Patent Machine

What investors are seeing in China is clarity. The country’s drug approval timelines now average 14 months, compared to over 24 months in the US. Domestic clinical trials account for over 80% of China’s phase III activity, thanks in part to localized infrastructure and reduced reliance on international supply chains. It’s a strategy with teeth: 19 Chinese drugs received FDA approvals in the first half of 2025, while the US managed just 7 novel ones in the same window.

Global Pharma Moves East

A second wind is coming from abroad. AstraZeneca just yesterday announced a $5.3 billion AI-powered drug discovery deal with China’s CSPC to develop oral treatments for chronic illness.

Also yesterday, China revealed it has successfully conducted its first clinical trial of a brain-computer interface, enabling a tetraplegic patient to control devices with their mind. This is a significant step in the race with the US in brain implant technology. The implant is the smallest in the world and aims to allow the patient to operate a robotic arm in future stages.

In addition, earlier this year, Pfizer paid $1.25 billion for rights to a Chinese cancer therapy and Bristol-Myers Squibb signed a multi-billion-dollar deal tied to another homegrown molecule. These are signals that global pharma is adjusting to where the real development pipelines are now emerging.

US Biotech Stalls While Tech Soars

Meanwhile, the US biotech scene tells a different story. VC funding has dropped 11% year-over-year in 2025, sitting at $18.4 bn, while tech VC continues to expand, buoyed by generative AI tailwinds. On the ground, American biotech companies are shrinking. Layoffs have hit major labs. New trials are slower to start. Startups are struggling to differentiate themselves in an ecosystem increasingly defined by M&A exit routes and restrictive disease-area prioritization.

Regulatory Drag and Shifting Incentives

There’s a philosophical difference under the hood, too. In China, the biotech build-out is a national strategy. In the US, it’s still a market story — subject to boom-and-bust cycles, and now burdened by the Inflation Reduction Act’s price caps, which have already wiped $240 billion off the pharma sector’s market cap since 2024. At the same time, US tech firms have remained largely untouched by regulatory intervention, and the spotlight is firmly on AI, chips, and cloud platforms.

Talent and IP Flow Back East

That divergence in focus helps explain another set of numbers. Chinese biotech companies now produce three times more late-stage drug candidates annually than the US. Clinical innovation has momentum—and it’s helped by China’s willingness to absorb and integrate foreign science, with 12,000 Western-trained scientists returning home since 2023.

The $1.79 Trillion Future of Biotech

Looking ahead, the numbers only grow. The global biotech market is projected to reach $1.79 trillion by 2033, up from $621 billion this year, driven largely by convergence with computing and manufacturing technologies. Key segments include:

  • AI-driven drug discovery, growing from $7.4B to $48B

  • Cell and gene therapy, projected to reach $67.2B

  • Synthetic biology, scaling to $52.8B by 2033

The caveat is most of the growth may not be happening in the US. China’s biotech boom isn’t pegged to the same interest rate cycles or investor mood swings that define US risk capital. The fundamentals are different — and they’re being rewarded.

Legendary biotech investor Elad Gil also has some thoughts on Biotech, outlined in a recent blog post some of the huge and often frustrating untapped opportunities he sees in the field due to a lack of investment and startups working on it. These include:

  • Anti-Aging: Only a half dozen legitimate startups exist despite potential.

  • Biomarkers: Most diseases still lack actionable, scalable diagnostic proxies.

  • Tooth Regrowth, Hearing Loss Reversal, Smell Sensors & Fertility: These are all areas Gil sees as having high demand but low startup activity.

America’s Biotech Crossroads

But, don't count the US out of the race yet. NIH funding has increased, with $54 bn allocated for precision medicine in 2025, and the FDA has modernized approval pathways, with a 37% jump in breakthrough designations this year. But the landscape is increasingly competitive, and domestic biotech leaders are calling for a more coherent national strategy. The challenge is balancing affordability mandates with innovation incentives—something China's centralized system doesn’t have to compromise on.

From Pitch Decks to Petri Dishes

For investors, the takeaway is more than just geographic. It’s structural. Biotech isn’t a trend—it’s infrastructure. And in 2025, the returns are showing up where that infrastructure is strongest. While AI may be attracting headlines and headline multiples, biotech is quietly compounding impact at the molecular level.

The next wave of breakout companies might not be building chatbots or designing chips, but building CRISPR-based therapies, biomanufacturing platforms, and longevity drugs that never saw the light of day in an American VC pitch meeting.

Those who want exposure to the future of health—and the returns that come with it—may want to shift their gaze from the server racks to the petri dishes. In China, the results are already visible.

"The biopharma ecosystem is set up for a limited number of "indication" or disease areas. A lot of important and commercially viable pre-existing biology that can be translated into real world applications is thus ignored."

Elad Gil, entrepreneur, operating executive, and investor, advisor to private companies

COMPANIES TO WATCH

[Open Deal] Cohere — The enterprise AI startup founded by ex-Google researchers is raising over $500M, aiming for a valuation of $5.5B-$6.5B. Its ARR has doubled, exceeding $100M, despite stiff competition.

Trump Media — The Trump Organization enters the telecom market with Trump Mobile, T1, a $499 Android offering a $47.45/month plan for unlimited talk, text, and data. Pre-orders are now open.

Scale AI — The San Fran data labeling, hyperscaler just aqui-hired by Meta has already lost its biggest client, Google, worth $200M p/a. p Microsoft may follow, OpenAI to reassess.

AMD — The chipmaker just unveiled a new batch of AI chips it claims compare to the performance of Nvidia’s Blackwell family while delivering a 35x inference boost over its previous generation

Ramp — The fintech startup has reached a $16B valuation after a $200M funding round led by Founders Fund, backed by Peter Thiel. It is rapidly expanding its financial services along with users and ARR.

Coco Robotics — An urban delivery startup backed by Sam Altman raised $80M to scale its fleet to 10,000 robots by 2026. The funds will enhance technology for obstacle avoidance and decision-making in urban settings.

Fervo Energy — The Utah geothermal power company secured $206M to develop the world's largest geothermal plant, aiming for 100 megawatts next year and 400 megawatts by 2028.

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BUZZY TOOLS

Buzzy Tech Tools To Watch & Use

GoogleAudio Overviews convert search results into audio.

Trump Mobile — Gold-plated $499 T1 Android on a $47.45/m unlimited plan.

Grok 3.5Musk claims it will be significantly smarter than other AIs.

AltaAI styling agent with $11M backed by Michelle Obama's stylist.

Reddit — AI tools enhance ads with trend analysis, comment summaries.

Seedance 1.0 — Bytedance AI video model tops Google Veo 3 in speed, detail.

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Alef Flying CarModel A electric car travels 220ml; ultralight class certified.

Kuickwheel Skyrider X6 — Chinese hybrid 44.7 mph flying motorcycle.

BUZZY TECH

The Latest Deep Technology & Trends To Watch

AI Cognition — China LLM tests show human-like cognition.

Self-Adapting LLMsMIT's SEAL uses reinforcement learning.

Toyota Robot City — Japan’s Woven City smart urban pilot opens.

Zuchongzhi 3.0 — China’s 105-qubit quantum processor rivals Willow.

UC Davis BCI — Enables real-time speech via neural link for ALS patients.

CRYPTO WATCH

Trump's Token WindfallDonald Trump earned over $57M from World Liberty Financial's token sales in 2024, holding 15.75Bn governance tokens. The project raised over $550M recently, sparking criticism over potential COI.

Truth Social's Crypto Move — The Trump-backed social media platform filed with the SEC for a bitcoin and ethereum ETF, allocating 75% of its assets to bitcoin.

Justin Sun's TRX IPO — The Sun-linked company plans a US public listing via a merger with SRM Entertainment, it will inject $210M into the Tron ecosystem and launch staking program. This follows a pause in the SEC inquiry into the company.

SPACE_RACE

SpaceX_HW4 static fire testing at Massey’s. Booster 16 test aims for catch landing

Quantum Space_Raises $40M for Ranger spacecraft with national security focus

Aethero_Secures $8.4M seed for AI-powered satellite operations tech

Earth Study_Correlation between magnetic field and oxygen levels over 540M years

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