Moderna to invest $1 billion in China to manufacture mRNA vaccines: Report

The company's chief executive officer Stephane Bancel is in China and the deal is expected to be signed on Wednesday

Vaccine maker Moderna is soon expected to invest $1 billion in China to develop mRNA-based vaccines and other products in the world's second-largest economy, according to a report by South China Morning Post (SCMP).

The company's Chief Executive Officer (CEO) Stephane Bancel is in China and the deal is expected to be signed on Wednesday. This comes after the company set up a legal entity in Shanghai earlier this year.

It has also set up a Chinese subsidiary Moderna (China) Biotech in Shanghai's Minhang district.

The development also comes at a time when Shanghai is trying to attract foreign direct investments (FDI) in the country's capital to boost its status as a gateway for foreign business to enter China. Moreover, it is also working on improving the country's image, which has been tainted by strict Covid-19 lockdowns.

Till now, Moderna has no presence in China. It had earlier opened an office in Hong Kong under a plan to expand in Asia.

Moderna is eyeing to expand in China despite the souring of relations between Shanghai and Washington DC. The US is working on regulations to limit capital and information flows into sensitive technologies in China like semiconductors and artificial intelligence (AI).

The report also said that Chen Jining, boss of the Shanghai Communist Party, is "determined" to attract top global companies with unique technologies to the country.

Moderna's investment would follow Tesla, which built a $2 billion electric vehicle plant in Lingang.