When Hillhouse Investment Management bought the China‑based clinical‑research arm of WuXi AppTec, the deal immediately drew the attention of US lawmakers and human‑rights organisations. The acquisition is seen as a conduit for American university endowments to support a company accused of working with the People’s Liberation Army and of facilitating the Chinese state’s oppression of Uyghur Muslims.
University money and the Hillhouse‑WuXi link
Yale University placed an initial $20 million in Hillhouse in 2005 and now reports a $2 billion return on that stake. Stanford University has contributed $200 million, while Princeton University has invested an undisclosed sum from its $36.4 billion endowment. Other backers listed in the report include the Ford Foundation, the Pritzker Foundation and the Metropolitan Opera, which later redeemed its investment in September 2021.
Hillhouse’s founder, Lei Zhang, began his career as an intern for Yale’s late chief investment officer David Swensen and has also been described as a business partner of Hunter Biden, the son of President Joe Biden.
Allegations against WuXi AppTec
WuXi AppTec has been accused of operating genetic‑testing centres in partnership with the People’s Liberation Army, enabling Beijing to identify and segregate Uyghur Muslims in Xinjiang. Former congressman Mike Gallagher (R‑Wis.) warned that this practice has been "a key pillar of the CCP's genocide in the region". Intelligence officials have further alleged that WuXi handed over US intellectual property to Beijing without consent.
The company rejects the claims, stating the accusations are "inaccurate or unsubstantiated."
Congressional response
House Speaker Mike Johnson (R‑La.) has called for an end to any funding that "investments propping up Communist China's aggression must come to an end." Rep. Greg Murphy (R‑N.C.) has introduced the Protecting Endowments From Our Adversaries Act, which would impose steep taxes on any portion of a college or university endowment invested in Chinese firms.
Lawmakers argue that the flow of US university capital into Hillhouse could indirectly support the Chinese military and the ongoing human‑rights abuses in Xinjiang, where an estimated one million Uyghurs have been detained in re‑education camps since 2017, subjected to forced labour, sterilisation and other atrocities. The United States declared Beijing’s treatment of the Uyghurs a genocide in 2021.
Institutional silence and next steps
None of the universities mentioned in the report responded to requests for comment. The Metropolitan Opera confirmed it had withdrawn its investment in 2021. As the debate continues, the Hillhouse‑WuXi transaction remains a flashpoint in the broader discussion about the role of US academic endowments in China‑related ventures and the potential security implications for the United States.