NEW YORK – The Chinese Ministry of Commerce said on Tuesday that it is banning Illumina from importing its next-generation sequencers into China, effective immediately.
The sanction was announced moments after the Trump administration's tariffs on all Chinese exports to the US — which doubled from 10 percent announced in February to 20 percent now — took effect on Tuesday.
In its announcement, the Chinese government said the action against Illumina, which had already been designated as a so-called "unreliable entity" last month, was to "protect national sovereignty, security, and interests" and was made in accordance with China's Foreign Trade Law, National Security Law, Anti-Foreign Sanctions Law, and other statutes.
It is unclear how Illumina's existing customers in China will be affected by the ban.
In a statement, Illumina said it is assessing China's announcement to fully understand its impact on its China operations. "Importantly, today’s announcement does not ban Illumina from operating in China," the company said. "We respect and abide by Chinese laws and regulations, and we are committed to operating in compliance with the latest guidelines from the Ministry of Commerce. We also appreciate the Chinese government's long-term support for foreign investors, including Illumina."
The ban on Illumina, along with a number of other US companies, is the latest escalation of the trade war between the US and China, which has intensified under the Trump administration. Last year, US lawmakers attempted to prevent the use of public funding for products from China's BGI-affiliate companies, including Illumina's competitor MGI Tech, through the Biosecure Act, though the bill was not voted on by the Senate before the year ended. Illumina has lobbied US politicians to support the legislation.
China represented 7 percent of total revenues for Illumina in 2024. In an earnings call with investors last month, Illumina CEO Jacob Thaysen declined to speculate on the potential impact of China's designation of the company as an "unreliable entity," noting that the firm is actively working with stakeholders to resolve the issue.
Illumina management "did not embed in guidance any inability to operate in the region," Barclays analyst Luke Sergott wrote in an analysis on Tuesday. Given the uncertain funding environment from the National Institutes of Health (NIH) under the Trump administration, "we find it highly likely that the management will need to reset guidance."
Sergott also noted that there are still uncertainties regarding the mechanics of the ban. "We would imagine that there is a bit of a grace period to wind down existing research and bring on the Chinese local competitor," he noted.
In an interview with GenomeWeb on the sideline of this year's Advances in Genome Biology and Technology (AGBT) last week, Thaysen said there were "certainly concerns" from Chinese customers following the "unreliable entity" designation of Illumina, adding that the company had received "a lot of feedback from Chinese customers that they want us in China."
Calling the situation "unprecedented" last week, Thaysen said Illumina is "in conversation" with the Chinese government for a resolution, though at the time, the company was still "operating normally" in the country.
"We want to get off that list," Thaysen said. "Clearly, [between] the new administration and China, we are caught in the crossfire now."