Carman Chan Calls China's Biotech Sector 'The Hidden Gem' in AI-Powered Healthcare Revolution

Introduction to China's Biotech Sector

In recent years, China's biotechnology sector has garnered significant attention, primarily due to its rapid development and potential for groundbreaking advancements. This burgeoning field holds not only economic promise but also the potential to address various societal challenges through innovative solutions. As highlighted by industry experts, the sector remains an undervalued gem, particularly when considering its capacity to integrate cutting-edge technologies such as artificial intelligence. AI's role in biotechnology is transformative, offering unprecedented capabilities in data analysis, research acceleration, and personalized medicine. These developments position China as a formidable player on the global biotech stage, potentially reshaping competitive dynamics and fostering new partnerships across international borders.

Carman Chan, the Founder and Managing Partner of Click Ventures, is a vocal proponent of China's biotech potential. During a recent interview on CNBC's 'Street Signs Asia,' Chan emphasized the sector's current undervaluation and highlighted the transformative role of AI in unlocking unparalleled opportunities for advancement. As Chan articulates, AI's capacity to quickly and efficiently process data can lead to innovative breakthroughs in drug discovery and development. This perspective is not only shared by Chan but also resonates with broader analyses, which predict that China's commitment to AI integration will propel it to global leadership positions in biotechnology, especially in fields like genomics and precision medicine.

The Chinese government's support plays a critical role in this upward trajectory, with initiatives like the "state venture capital guidance fund" established to bolster investment in AI-driven biotechnology. This fund reflects the government's strategic intent to accelerate innovation in crucial sectors. Furthermore, AI's integration extends into diverse areas such as agriculture, where it aids in producing superior crop yields. Such advancements underscore China's multifaceted approach to biotech development, leveraging AI to address both medical and agricultural needs. As a result, China's policy and investment initiatives are creating a robust environment conducive to biotech innovation, attracting global attention and reinforcing the nation's position in the international biotech landscape.

Carman Chan's Views on Undervaluation and Potential

Carman Chan, through her insightful analysis, underscores the undervaluation of China's burgeoning biotech industry, particularly in light of its integration with artificial intelligence (AI). During her appearance on CNBC's 'Street Signs Asia,' Chan highlighted how the sector's current market value doesn't fully encapsulate the tremendous possibilities that AI could unlock, such as accelerated research and drug development processes. She posits that leveraging AI's capabilities could catapult China into a new frontier of biotech innovation, mirroring the exponential growth witnessed in other tech-driven industries ().

Experts like Chan argue that as China continues to bolster its biotech capabilities, particularly with the integration of AI, the sector could become a global leader. This perspective is not merely speculative but is supported by China's ambitious goals for 2035, which include leading advancements in precision medicine, genomics, and synthetic biology. These advancements could potentially reshape not only the biotech sector but also broader technological landscapes, given AI's transformative power across fields ().

The invitation for greater international investment, spurred by undervaluation narratives like those presented by Chan, could radically alter the competitive dynamics within global biotech industries. She suggests that such investment influxes might precipitate more dynamic partnerships between Chinese biotechnological firms and international counterparts, facilitating knowledge exchange and technological symbiosis ().

Chan's insights also touch upon sociopolitical dimensions. As AI aids China's biotech sector in breaking new ground, there's the possibility it could influence global healthcare accessibility, making personalized medicine more prevalent and affordable. However, these innovations are not without challenges, notably ethical concerns regarding data privacy and algorithmic bias, necessitating robust governance frameworks to safeguard individuals' rights while promoting technological progress ().

Moreover, Chan foresees that enhanced investment in China's biotech sector might lead to a geopolitical shift in the global pharmaceutical marketplace. This could challenge the established dominance of Western companies, potentially lowering drug prices worldwide and expediting the pace of biomedical breakthroughs. Such developments could have significant implications not just economically, but also in ensuring wider accessibility to life-saving treatments on a global scale ().

Role of AI in Revolutionizing Biotech

Artificial intelligence (AI) is rapidly transforming the biotechnology sector by enhancing capabilities in data analysis, drug discovery, and personalized medicine. As Carman Chan, Founder and Managing Partner of Click Ventures, pointed out, the potential of AI to revolutionize biotech is particularly significant in China, where the sector remains undervalued despite its vast opportunities. Chan emphasizes that AI's integration can drive substantial advancements in genomics, precision medicine, and synthetic biology, aligning with China's ambitious goals to lead globally by 2035 (CNBC).

One of the most promising applications of AI in biotechnology is its role in accelerating drug discovery processes. By processing and analyzing large-scale biological data, AI can identify potential drug candidates more efficiently than traditional methods. For instance, Chinese biotech firms are utilizing AI to develop innovative therapies, evidenced by Akeso's lung cancer drug, Ivonescimab, which has shown superior performance compared to established drugs in clinical trials. This success illustrates the transformative impact AI can have in developing innovative treatments, reshaping global perceptions of Chinese biotech capabilities (CNN).

Additionally, AI's integration into crop breeding represents a groundbreaking development in biotechnology. Chinese researchers are employing AI to enhance crop yields and develop superior varieties, as showcased at the 2025 Seed Congress. This application not only bolsters China's agriculture sector but also demonstrates the diverse possibilities of AI applications in biotech, fostering resilience against climate change and food scarcity (People's Daily Online).

However, the rapid integration of AI into biotech also poses challenges. Ethical considerations, such as data privacy and algorithmic bias, need to be addressed to ensure responsible use and widespread acceptance. The geopolitical ramifications are equally critical, as China strengthens its position in the biotech landscape, potentially provoking shifts in global power dynamics and intellectual property debates. These considerations highlight the importance of sustainable and ethical AI practices as they continue to revolutionize the biotech sector (CNBC).

Government Incentives and Funding in Chinese Biotech

China has taken notable strides in bolstering its biotech sector through strategic government incentives and funding. A pivotal part of this plan is the establishment of the "state venture capital guidance fund," designed to attract investment in key sectors such as AI and biotechnology. This initiative underscores China's commitment to fostering an environment conducive to groundbreaking research and development. For instance, investments in AI-driven biotech innovations are anticipated to accelerate advancements and enable substantial economic benefits, both within China and globally [1](https://www.cnn.com/2025/03/06/tech/china-state-venture-capital-guidance-fund-intl-hnk/index.html).

The government's push does not merely stop at funding. By encouraging the adoption of cutting-edge technologies, such as AI in crop breeding, China is expanding its capacity to lead in biotechnological innovations. Such initiatives were vividly showcased at the 2025 Seed Congress, where developments like the "SeedLLM" were highlighted [2](http://en.people.cn/n3/2025/0324/c90000-20293086.html). These innovations are crucial in meeting food security needs and advancing agricultural biotech in the face of a growing population and environmental challenges.

Furthermore, China's open-source AI models strategy is unexpectedly fueling rapid innovation and adoption across various technological sectors, including biotech. By lowering barriers to entry, these models facilitate a collaborative atmosphere that nurtures creativity and accelerates progress. This approach aligns with the larger national objectives of integrating AI with biotech, a synergy that promises to not only advance scientific knowledge but also enhance China's competitive stance on the global stage [4](https://www.cnbc.com/2025/03/24/china-open-source-deepseek-ai-spurs-innovation-and-adoption.html).

Chinese biotech firms are increasingly engaging in significant global partnerships, leading to innovative and competitive drug development scenarios. This is best exemplified by Akeso's success in outperforming established Western drugs in clinical trials, signaling a shift in global pharmaceutical dynamics [2](https://amp.cnn.com/cnn/2025/02/25/business/china-biotech-global-disruption-intl-hnk). These partnerships are reflective of a broader trend of increasing licensing deals between Chinese and Western pharmaceutical companies, pointing towards a promising future of collaboration and innovation in drug discovery and development.

Advancements in AI-Driven Crop Breeding

Artificial intelligence (AI) is revolutionizing the landscape of crop breeding by enabling the rapid analysis and synthesis of genetic data, which significantly accelerates the development of improved crop varieties. With the recent advancements highlighted at the 2025 Seed Congress in China, particularly through projects like "SeedLLM," AI is unleashing new potentials in enhancing crop yields and resilience to environmental challenges. This initiative is a testament to the increasingly sophisticated integration of technology and agriculture, which promises to meet the growing global food demand amid climate change concerns [2](http://en.people.cn/n3/2025/0324/c90000-20293086.html).

AI-driven techniques in crop breeding are not only improving the efficiency of selection processes but are also introducing a new era of precision agriculture. By utilizing deep learning algorithms and comprehensive datasets, researchers can now predict crop performance and stress responses with unprecedented accuracy. This approach is transforming traditional methods that relied heavily on time-consuming trial-and-error processes. The shift towards AI innovation in agriculture is fostering collaborations between tech firms and agricultural scientists, further enhancing the potential for breakthroughs [2](http://en.people.cn/n3/2025/0324/c90000-20293086.html).

The use of AI in crop breeding is part of a broader trend towards digital agriculture, where technologies like drones, IoT sensors, and blockchain are converging to create highly efficient and transparent food production systems. China's commitment to AI-driven agricultural advancements, as demonstrated by its support for open-source AI models, is also fueling global competitiveness and innovation in the biotech sector. The integration of these technologies helps to optimize the breeding programs by identifying the best genetic traits quickly and cost-effectively, thus ensuring that agriculture remains sustainable and productive [4](https://www.cnbc.com/2025/03/24/china-open-source-deepseek-ai-spurs-innovation-and-adoption.html).

In addition, the global adoption of AI in crop breeding has profound implications for food security and economic development. By leveraging AI, countries can quickly adapt crops to suit local climates and soil conditions, thus minimizing the risks associated with extreme weather events and pests. This innovation is critical for developing nations, where agriculture forms the backbone of the economy. With enhanced crop resilience and productivity, AI-driven crop breeding could contribute substantially to reducing hunger and poverty worldwide. As China leads the charge in this field, it underscores the narrative of a potentially undervalued biotech market ripe for investment opportunities [2](http://en.people.cn/n3/2025/0324/c90000-20293086.html).

Open-Source AI Models and Biotech Growth

Open-source AI models are playing an increasingly pivotal role in the growth of the biotech sector, particularly in China, a country rapidly advancing towards the frontiers of technology and innovation. With the integration of open-source AI, China's biotech industry is not only gaining traction but is poised to redefine conventional norms in biotechnology. The open-source paradigm enables developers and researchers to access cutting-edge AI technologies without the hefty price tag, facilitating a more inclusive and rapid advancement of biotech applications, as highlighted in [this CNBC article](https://www.cnbc.com/2025/03/24/china-open-source-deepseek-ai-spurs-innovation-and-adoption.html).

The synergistic relationship between open-source AI models and biotech advancements is catalyzing unprecedented growth in the sector. By employing AI in biotech, Chinese firms are developing innovative solutions that are reshaping global perceptions of Chinese innovation. For instance, advancements in AI-driven drug discovery and personalized medicine have positioned China as a formidable player, with companies like Akeso achieving breakthroughs with their cancer treatments, as detailed by [CNN](https://amp.cnn.com/cnn/2025/02/25/business/china-biotech-global-disruption-intl-hnk).

Leveraging open-source AI models provides a unique advantage in the biotech sector: the ability to innovate rapidly and cost-effectively. China’s adoption of these models is spurring substantial innovations, as evidenced by the country's substantial "state venture capital guidance fund," which aims to drive AI and biotech advancements [see CNN report](https://www.cnn.com/2025/03/06/tech/china-state-venture-capital-guidance-fund-intl-hnk/index.html). This strategic investment is expected to yield significant returns, promoting innovation that extends beyond traditional biotech applications into areas such as genomics and precision medicine.

In conclusion, the marriage of open-source AI and biotechnology presents tremendous opportunities for growth and innovation, particularly in China. This integration not only affords the Chinese biotech industry an edge over its global counterparts but also sets the stage for major breakthroughs that could redefine healthcare delivery worldwide. The sector's potential is further buoyed by significant investments and China's ambitious goals for 2035, as analyzed on [LinkedIn](https://www.linkedin.com/pulse/ai-bioeconomy-china-comprehensive-analysis-kjeld-friis-munkholm-%E5%AD%9F%E5%8F%AF%E5%92%8C-sqvtf).

Success Stories: Akeso and Global Licensing Deals

In the rapidly evolving biotech sector, Akeso has become a symbol of Chinese innovation with its groundbreaking lung cancer treatment, Ivonescimab. This drug has notably outperformed Merck's Keytruda in clinical trials, marking a significant milestone for Chinese biotechnology firms on the global stage. This achievement is part of a larger trend of increasing global recognition for China's biotech capabilities, spurred in part by the DeepSeek AI event that highlighted the country's cutting-edge advancements. The significance of Akeso's success is underlined by the growing number of licensing deals between Chinese and Western pharmaceutical companies, which soared from 46 deals in 2017 to over 200 by 2024, with values jumping from $4 billion to a staggering $57 billion. This evolution reflects a shift from merely producing generic drugs to pioneering innovative therapeutics, reshaping perceptions of China's role in the global pharmaceutical market. However, despite these advancements, there are still domestic concerns in China concerning the quality of generic medicines, indicating a dual narrative of innovation and caution within the industry. Moreover, while Ivonescimab has received approval in China, its journey towards market penetration in the U.S. involves further clinical trials, signifying both progress and challenges ahead. (Source: )

Social and Ethical Implications of AI in Biotech

The integration of artificial intelligence (AI) into biotechnology presents profound social and ethical implications. At the forefront, the potential for AI to revolutionize the biotech industry in China highlights opportunities for enhanced healthcare access and personalized medicine. The marriage of AI and biotech can lead to groundbreaking discoveries, improving treatments and making healthcare more accessible to diverse populations. However, this integration also raises significant ethical questions concerning data privacy, as AI systems often rely on the vast processing of personal, sensitive data. The risk of algorithmic bias, where AI might inherently favor certain demographics over others, is also a pressing concern for both developers and end-users [1](https://www.cnbc.com/video/2025/03/24/carman-chan-on-vc-scene-biotech.html).

Furthermore, AI-driven advancements in biotech could reshape the global landscape, challenging the dominance of long-standing Western companies and potentially leading to a more diversified international market. This shift can drive lower drug prices and quicker innovation deployment across borders. However, the geopolitical implications of a burgeoning Chinese biotech sector are vast. Increased strategic competition and intellectual property disputes may arise, as countries grapple with the balance between collaboration and national security regarding sensitive biotechnological advancements. Public trust in AI applications is crucial, necessitating transparent and ethical AI development guidelines to ensure equitable access and utilization of biotechnological innovations [1](https://www.cnbc.com/video/2025/03/24/carman-chan-on-vc-scene-biotech.html).

Future Prospects: Global Impact and Competitive Dynamics

The future prospects for China's biotech sector and its global impact have been a focal point of discussion among industry experts. Carman Chan, the Founder and Managing Partner of Click Ventures, highlights that China's biotech industry is currently undervalued. This perception is particularly intriguing given the nation's potential to leverage artificial intelligence (AI) for groundbreaking advancements in biotechnology. As noted during her discussion on CNBC's "Street Signs Asia," the integration of AI into biotech could significantly accelerate research and development, offering transformative opportunities not just for China but for the global industry as well. AI's ability to process large datasets swiftly can catalyze innovation in drug discovery and precision medicine, placing China at the forefront of global biotech innovation [1](https://www.cnbc.com/video/2025/03/24/carman-chan-on-vc-scene-biotech.html).

China's strategic commitment to bolstering its biotech sector is evident in its government-backed funds and initiatives aimed at fostering AI-driven technological advancements. The establishment of the "state venture capital guidance fund" underscores a robust governmental acknowledgment of the potential for substantial economic contributions from AI and biotech. This initiative aims to harness international and domestic investments, promoting cutting-edge research and attracting top talent from around the world. Notably, Chinese scientists are already making significant strides, utilizing AI in fields like crop breeding, which was showcased at the 2025 Seed Congress [2](http://en.people.cn/n3/2025/0324/c90000-20293086.html). Such innovations highlight the broader implications of blending AI with biotech, potentially revolutionizing industries beyond traditional medicine.

Competitive dynamics within the global biotech arena are also shifting, as evidenced by the achievements of Chinese biotech firms in developing novel therapeutics. A notable instance is Akeso's Ivonescimab, a lung cancer drug that surpassed Merck's Keytruda in clinical trials. This development gained international attention following events like the DeepSeek AI forum, which amplified awareness of China's burgeoning innovation. Moreover, the increasing number of cross-border licensing deals between Chinese and Western pharmaceutical companies marks a transition towards more collaborative and innovative approaches to drug development. These developments not only signify China's firm position in the global biotech landscape but also highlight potential areas of collaboration and rivalry with established markets such as those in the US and Europe [2](https://amp.cnn.com/cnn/2025/02/25/business/china-biotech-global-disruption-intl-hnk).

While these advancements present significant economic and social opportunities, they also raise geopolitical and ethical concerns. The prospect of China ascending as a leading force in the biotech sector could lead to strategic competition, particularly with Western countries that have traditionally dominated this space. Issues such as intellectual property rights and equitable access to innovative treatments become more pronounced as these dynamics shift. Additionally, the ethical implications of AI integration, including concerns about data privacy and potential algorithmic biases, must be addressed to ensure that technological advancements benefit society broadly without exacerbating inequalities [1](https://www.cnbc.com/video/2025/03/24/carman-chan-on-vc-scene-biotech.html).

Looking forward, the global biotech ecosystem may be significantly reshaped by increased investments and innovations originating from China. This trend could potentially lower the cost of healthcare globally and accelerate the pace of medical advancements, offering benefits such as more affordable and personalized medicine. However, it also requires a balanced approach to managing the challenges associated with such rapid technological integration, including the socio-economic impacts and the adjustments required in international regulatory frameworks to keep pace with these developments [2](https://amp.cnn.com/cnn/2025/02/25/business/china-biotech-global-disruption-intl-hnk).