Lobbying Giant's Controversial Chinese Client
Global Counsel, the influential lobbying firm co-founded by former Labour minister Peter Mandelson, entered into a substantial $3 million contract with Chinese pharmaceutical company WuXi AppTec during a period of intense international scrutiny. The agreement, signed in 2023, came shortly after American authorities had flagged WuXi AppTec in national security investigations over alleged connections to China's military infrastructure.
The Chinese firm sought Global Counsel's expertise in geopolitical risk mitigation following its inclusion in the US Biosecure Act, proposed legislation aiming to restrict federal funding to biotechnology companies with ties to foreign adversaries. This development placed WuXi AppTec's substantial American operations under threat, given that the US market represents the company's primary revenue source.
Mounting International Pressure
In January 2024, American lawmakers formally identified WuXi AppTec among several Chinese biotech firms suspected of maintaining relationships with foreign adversary military and security agencies. The situation escalated the following month when a bipartisan group of senators and congressmen demanded investigations into the company's alleged connections to both the Chinese Communist Party and military establishments.
WuXi AppTec's chairman, Ge Li, publicly challenged these accusations through an open letter in February 2024, characterising the proposed legislation as misguided and rejecting what he termed blanket allegations and preemptive actions against the company. Despite these protests, the pharmaceutical giant turned to Global Counsel to manage the escalating reputational damage and operational restrictions affecting its international supply chains.
Global Counsel's Response and Mandelson's Departure
Global Counsel has maintained that its work with WuXi AppTec focuses exclusively on European policy matters, not American concerns, and has formally registered this distinction within the European Union's transparency framework. The firm's chief executive, Benjamin Wegg-Prosser - formerly Tony Blair's head of strategic communications in Downing Street - leads the WuXi AppTec account.
Meanwhile, Peter Mandelson's relationship with Global Counsel underwent significant changes during this period. He relinquished his position as chair in May 2024 and ceased advisory responsibilities by December 2024. According to company records from October, Mandelson retains a minority stake in the business, though this investment has been ringfenced and is currently in the process of being divested completely.
Mandelson's extensive connections to Chinese interests attracted particular attention following his controversial appointment as UK ambassador to Washington in February 2025. Critics argued that his dovish stance on China and advocacy for closer trade relationships made him unsuitable for representing British interests in the United States. His diplomatic tenure proved remarkably brief, ending after just seven months when disclosures emerged regarding his friendship with convicted sex offender Jeffrey Epstein.
Broader Implications for Biotech Security
The proposed Biosecure Act reflected growing American concerns about protecting citizens' health data and genetic information from potential foreign exploitation. Supporters argued that preventing Chinese dominance in biotechnology supply chains constituted a vital national security priority.
Richard Connell, WuXi AppTec's president for US and European operations, criticised what he called unfounded allegations against the company. In a LinkedIn post from May, he emphasised the firm's strict adherence to US laws and security protocols while warning about the bill's potential damage to American leadership in biotechnology innovation.
Despite initial concerns, the original Biosecure Act failed to pass through the Senate in 2024 following significant industry opposition. A revised version endorsed by the US Senate last month adopted a more moderate approach and notably omitted any specific references to WuXi companies.
In a demonstration of continued European expansion, WuXi AppTec recently announced plans to establish its first European headquarters in Germany, signalling confidence in its ability to navigate complex international regulatory landscapes despite ongoing geopolitical challenges.
