Hou was born in 1929 in Changzhou, Jiangsu province. From an early age, Hou decided to study medicine, after watching his elder brother die from infectious disease. In 1958, After graduating from the Wuhan Medical School he studied at the in the USSR for 4 years. During his time at the institute, the lab mice mysteriously died. Hou had discovered that they had contracted the Sendai virus. Continuing his research, he discovered that the virus can evolve to affect Humans, and that Sendai virus could fuse monolayer cells. Based on his studies he authored 17 medical papers and earned a kandidat nauk degree in medical sciences. It was the first time the institute had agreed to award this degree to a foreign student. Continuing his work in China, Hou researched the etiology of respiratory viral infections to identify and isolate main pathogens of respiratory diseases. He managed to isolate three types of parainfluenza viruses, type I, II and IV, which helped dealing with the disease epidemic outbreaks in Beijing during 1962–1964. he laid the foundation for China's molecular virus research and created the first Chinese genetically engineered drugs. In late 1970s he established the first domestic clinical-grade human leukocyte interferon production, which earned him the nickname "Father of Chinese Interferon". From 1984 to 1997 he served as the head of planning expert committee on biotechnological field of Program 863. After the restrictions on businesses were relaxed in the 90-s, Hou started one of the first Chinese genetic engineeringdrug companies. During the 2009 flu pandemic, Hou, while being over 80, led the Chinese response and prevention to the outbreak. While a vaccine was created, a question arose if one or two doses were required. Chinese companies could not support making the amount of vaccines required for two doses and Hou was at the forefront arguing that one dose would be enough. At the end, the committee of experts founded to resolve the issue agreed with his decision. During his lifetime he authored more than 500 articles and books.