US drugmakers are trying to reduce dependence on China

US pharmaceutical companies are trying to reduce their dependence on Chinese companies for drug production, ingredients and research, The Wall Street Journal reported on November 1.

Geopolitical conflicts such as cargo ship attacks in the Red Sea and spy balloons above the US, have encouraged domestic medical supply companies to reduce their dependence on foreign business.

Quality issues have also driven nearshoring efforts; for example, in 2023, the FDA ADVISED that some syringes made in China were breaking and leaking, exhortation American companies will step up production of syringes.

Attempts to move away from Chinese pharmaceutical suppliers may be difficult, however, as China produces 32% of the world’s antibiotic supply. A Chinese drug manufacturer, WuXi AppTec, is estimate to be involved in the production of a quarter of the drugs used in the US

Of the facilities producing active pharmaceutical ingredients for the US, 28% are domestic, while 26% are in the European Union, 18% in India, 13% in China, 2% in Canada and 13% in other countries, as of 2019. The data FDA.

In 2024, the US high tariffs on syringes and needles made in China from 0% to 50%. Federal officials said the tariffs would improve the quality of products on the market, but CRITICS argues the policy may increase healthcare costs.

Industry officials said The Wall Street Journal that the move away from Chinese suppliers could also slow drug launches if US companies redirect research funds to increase manufacturing budgets.