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Kinda surprising Peking University and China Medical University were getting research grants from the US government.

The NIH has been funding studies in China run by Chinese institutions since at least 1985 (see https://reporter.nih.gov/search/feqMQ1HUnUmWJHKzGl8wMA/proje...).

Wouldn't it be part of a wider scheme to brain drain the PRC as a whole?

"brain drain" would have the brains relocate to the USA wouldn't it?