Chinese biotech company BGI Genomics provided mobile labs for conducting COVID-19 tests at a sports center in Beijing. Photo credit: Xinhua/Chen Zhonghao via Getty Images.

A U.S. subsidiary of Chinese genomics company BGI Group received a loan through the Paycheck Protection Program (PPP), according to data on the program released by the U.S. Treasury Department.

Update: The company announced on July 17 that it had returned the loan after Treasury "issued new guidance clarifying that the loans were not intended for companies with access to the equity market."

"BGI aims to do the right thing. BGI Americas’ business is managing under these difficult circumstances, and does not want to distract from the U.S. government’s need to prioritize recipients when funds are limited and other small businesses are in greater need. We remain fully committed to protecting the jobs of our U.S. employees.
BGI press release

Why it matters: BGI's close ties to the Chinese government, which is constructing a massive genetics database of its population, have raised concerns among U.S. officials.

Driving the news: PPP recipients came under scrutiny amid criticism that the program did not efficiently direct loans to the small business owners most in need of assistance during the pandemic.

Details: BGI Americas Corporation received a loan amount between $350,000 and $1 million.

  • The PPP program permitted U.S. subsidiaries of foreign companies to apply for loans under some conditions.

What they're saying: "BGI Americas’ U.S. business has been negatively impacted by the pandemic. BGI Americas is using the loan to help cover salaries and prevent layoffs of U.S. employees," a BGI Americas spokesperson told Axios.

Background: BGI Group is one of the largest gene sequencing companies in the world.

  • Amid rapidly rising coronavirus cases earlier this year, California rejected proposals from CGI, a U.S. subsidiary of BGI, to build coronavirus testing labs in the state.
  • U.S. officials are worried that state-connected companies such as BGI could use widespread coronavirus testing to compile massive DNA databases for research and genetics-based surveillance, Axios reported in June.
  • BGI has also said it is building a gene bank in Xinjiang, a northwestern region in China where the Chinese government is currently engaged in cultural and demographic genocide against local ethnic groups and where Chinese police have explored the use of genetic surveillance of minorities.

Go deeper: Chinese coronavirus test maker agreed to build a Xinjiang gene bank

Editor's note: This story has been updated to show that BGI returned its PPP loan after coverage by Axios.

Go deeper

Dion Rabouin, author of Markets
Sep 9, 2020 - Economy & Business

Small businesses are losing confidence in their survival

Data: Goldman Sachs; Chart: Axios Visuals

Small businesses have largely exhausted their federal funding and are starting to lay off workers, with many worrying about having to shut their doors for good, according to a new survey from Goldman Sachs provided exclusively to Axios.

Why it matters: Business still has not returned to normal, six months after the coronavirus pandemic first appeared in U.S. But small firms say the money they received from the Paycheck Protection Program has run dry.

What to expect from the final debate of the 2020 election

Trump and Biden at the first debate. Morry Gash-Pool/Getty Image

Watch for President Trump to address Joe Biden as “the big guy” or “the chairman” at tonight's debate as a way of dramatizing the Hunter Biden emails. Hunter's former business partner Tony Bobulinski is expected to be a Trump debate guest.

The big picture: Trump's advisers universally view the first debate as a catastrophe — evidenced by a sharp plunge in Trump’s public and (more convincingly for them) private polling immediately following the debate.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Chris Christie: Wear a mask "or you may regret it — as I did" — Senate Democrats block vote on McConnell's targeted relief bill.
  2. Business: New state unemployment filings fall.
  3. Economy: Why the stimulus delay isn't a crisis (yet).
  4. Health: FDA approves Gilead's remdesivir as a coronavirus treatment How the pandemic might endMany U.S. deaths were avoidable.
  5. Education: Boston and Chicago send students back home for online learning.
  6. World: Spain and France exceed 1 million cases.