China's dominance in pharmaceutical ingredients poses challenge for West
China has become a dominant supplier of pharmaceutical ingredients, supplying 40% of global active pharmaceutical ingredients (APIs) and nearly 41% of key starting materials (KSMs) for US-approved drugs exclusively from China, according to Chinese government data and the Brookings Institution. This concentration has raised concerns in Washington about potential weaponization, similar to China's rare earths leverage. The Council on Foreign Relations warned in a report last month of such risks. In November, the Atlantic Council urged the US, EU, India, and Mexico to strengthen medical trade and supply chain resilience to reduce reliance on China.
Key facts
- China supplies 40% of global active pharmaceutical ingredients (APIs).
- Nearly 41% of key starting materials (KSMs) for US-approved drugs are sourced exclusively from China.
- The Council on Foreign Relations warned of dependence on Chinese pharmaceutical ingredients.
- The Atlantic Council urged the US, EU, India, and Mexico to reduce reliance on China.
- China's near-monopolies provided leverage in last year's trade dispute.
- US think tanks are concerned about pharmaceuticals as a critical dependency.
- China's production of drug inputs has boomed in recent years.
- The concern is over upstream pharmaceutical ingredients, not finished pills.
Entities
Institutions
- Brookings Institution
- Council on Foreign Relations
- Atlantic Council
- European Union
- India
- Mexico
Locations
- China
- Washington
- United States