A Chinese researcher's claim that he successfully modified the genes of human embryos may force the country to make a stark choice about the future of its burgeoning biotechnology industry — one with significant implications for an emerging technology arms race with the West.

He Jiankui, an American-educated scientist based in Shenzhen, announced on Monday that he'd used Crispr, a powerful gene-editing tool, to make recently born twin girls resistant to HIV. He's statement, which was not backed by peer-reviewed data and hasn't been verified, prompted widespread condemnation from scientists in China and elsewhere, with many calling it an irresponsible use of a technology whose long-term effects are still poorly understood.

Yet whatever the veracity of He's claims, it's likely that China, with its aggressively entrepreneurial start-ups and less stringent regulation, will be the country where researchers most rapidly test the currently accepted boundaries of genetic manipulation. That presents its leaders with a dilemma: Whether to follow the U.S. and Europe in strictly regulating its application, or take a more hands-off approach, catalyzing rapid innovation in a strategic industry at the cost of what could be serious risks to patients.