American CNN: Trump's tariff threat reveals China's control over the global pharmaceutical industry!

China and India dominate global generic drug manufacturing capabilities, but 70% of India's raw materials also come from China.

Published by American media CNN on June 4th.

This is the most commonly prescribed antibiotic in the United States, amoxicillin.

This penicillin derivative has been in short supply and is currently manufactured by only one company in the U.S., with China controlling 80% of the raw materials needed for its production.

This is a significant issue because U.S. President Donald Trump has threatened to impose tariffs on pharmaceutical imports, drawing attention to America's reliance on foreign critical drug supplies.

CNN said: "If trade hostility or prolonged conflicts increase, China's supply chain will be a powerful weapon in a trade war, which may disrupt our access to amoxicillin or its manufacturing components."

Last year, according to U.S. Census Bureau trade data, 96% of hydrocortisone, 90% of ibuprofen, and 73% of acetaminophen imported into the U.S. came from China.

So far, China has not publicly threatened to use its dominant position in this sector of the pharmaceutical industry.

However, if Trump imposes tariffs on this industry, existing drug shortages may worsen, and drug prices may rise, which would contradict his commitment to reduce medical costs.

Although industry insiders and experts generally acknowledge America's severe dependence on China's pharmaceuticals, there is little comprehensive data on the extent of this reliance across the entire industry, as major pharmaceutical companies have little motivation to disclose such information.

According to Jackson, given that China produces 80% of the world's amoxicillin raw materials, this is a clear example showing how vulnerable the world is before China.

In late April, Trump stated that pharmaceutical companies "must" produce drugs in the U.S., otherwise they would face "tariff barriers."

However, experts say that tariffs are unlikely to achieve this goal, as generic drugs have become commodities, with price being the main differentiating factor.

On the contrary, tariffs could not only increase patients' medical expenses but also potentially exacerbate current drug shortages by driving generic drug manufacturers out of the U.S. market.

China's dominant position in the global pharmaceutical supply chain is part of its role as the world's factory. For decades, to pursue lower production costs, pharmaceutical companies have relocated their production from Western countries to places like China and India.

China and India dominate global generic drug manufacturing capabilities.

But even the largest supplier of generic drugs globally, India, relies on China for raw materials and other key components. In fact, according to a 2023 report commissioned by the Indian government, 70% of India's bulk drug imports come from China.

Experts say: "Each of these drugs involves human life, and if there is a shortage, it will become a disaster. You may feel angry, but your life is not in danger."

Source: https://www.toutiao.com/article/1833958181817351/

Disclaimer: The article solely represents the author's personal views.