PacBio Expands Long-Read DNA Sequencing in China Amid Illumina Import Ban

Illumina Import Ban Opens Market Opportunity

Due to an import ban on Illumina’s DNA sequencers into China—implemented in retaliation to the Trump administration’s fluctuating tariffs against the country—Pacific Biosciences (PacBio) is accelerating its expansion efforts in the Chinese market. With Illumina unable to ship its sequencers, PacBio is strengthening its distribution network to increase adoption of its high-fidelity (hi-fi) long-read sequencing technology across clinical and research laboratories in China.

New Distribution Agreement with Haorui Gene

PacBio has enhanced its partnership with Haorui Gene, a Xi’an-based genomics firm that has already deployed 10 of PacBio’s Sequel II and Revio sequencers, focusing primarily on blood typing genomics and human leukocyte antigen (HLA) testing. The new agreement empowers Haorui Gene to distribute PacBio’s recently introduced Vega benchtop system nationwide, along with providing product support.

“This arrangement formalizes a strong foundation and supports our broader goal to make accurate, long-read sequencing standard practice in clinical genomics,” said PacBio President and CEO Christian Henry. He further praised Haorui Gene’s expertise in complex genomic areas, noting, “Their leadership in blood group and HLA typing, paired with our HiFi technology, has already delivered real progress in China, making them an ideal partner to help scale access to our highly accurate long-read sequencing technologies across China.”

Long-Read Sequencing Advantages in Clinical Genomics

PacBio emphasizes that its long-read sequencing platform is particularly suited for blood-based genomic applications, offering the capability to accurately sequence full-length genes and polymorphic regions critical for donor matching and transfusion safety.

Impact of US-China Trade Tensions on Illumina and PacBio

Illumina had plans to expand manufacturing in China, launching a reagent production facility near Shanghai in 2022 and aiming to include instrument production by 2028. However, following the U.S. imposition of tariffs—starting at 10% in February 2023 and increasing to 20% in March—China added Illumina to its “unreliable entities list,” resulting in an import ban. Despite continuing operations in China, Illumina subsequently announced global cost-cutting measures, including a $100 million reduction.

U.S. tariffs on Chinese goods peaked at 145%, with China responding by imposing tariffs up to 125% on American imports, before a partial rollback commenced this May with a 90-day pause reducing duties to approximately 30% and 10%, respectively.

PacBio has also contended with tariff-related challenges. In April, the company announced reductions in workforce and spending due to supply chain pressures and decreased U.S. government biomedical research funding. It plans to cut annual operating expenses by $45 million to $50 million and concentrate on advancing its long-read sequencing platforms instead of the Onso short-read sequencer introduced in 2022, which competed directly with Illumina’s technology.

Expansion Beyond China: Initiatives in Asia-Pacific

Beyond China, PacBio recently launched a collaboration in Thailand aimed at integrating whole genome sequencing into newborn DNA screening programs. Partnering with Chulalongkorn University in Bangkok, this initiative marks the first regional effort to deploy hi-fi sequencing on a population scale.

Highlights

• Illumina’s DNA sequencers face an import ban in China amid escalating U.S.-China trade tensions.
• PacBio expands its footprint by strengthening distribution with Xi’an-based Haorui Gene, introducing the Vega benchtop system nationwide.
• PacBio’s long-read sequencing is particularly effective for blood typing and HLA testing due to its ability to analyze full-length genes and complex regions.
• Illumina’s planned China manufacturing expansion stalled due to tariffs and import bans, leading to global cost cuts.
• PacBio faces similar trade-related pressures, cutting expenses and refocusing on long-read sequencing platforms.
• PacBio extends its reach in Asia-Pacific through a newborn screening project with Chulalongkorn University in Thailand.