Coronavirus Outbreak Exposes China’s Monopoly on U.S. Drug, Medical Supplies
The coronavirus outbreak has exposed the United States’ dangerous dependence on China for pharmaceutical and medical supplies, including an estimated 97 percent of all antibiotics and 80 percent of the active pharmaceutical ingredients needed to produce drugs in the United States.
The economic repercussions of the coronavirus reveal the dangers of allowing one country to have a near monopoly on global manufacturing, David Dayen explains in an article at the American Prospect:
China is a source of not only finished goods, but also of input parts and raw materials. A substantial number of the materials needed for defense and electronic systems come from China, and that nation is “the single or sole supplier for a number of specialty chemicals,” according to a recent Defense Department report. Rare earth minerals, which are critical to electronics, are largely mined in China. As a result, Chinese disruptions don’t just hit Chinese manufacturing, they hit everyone’s. Automakers have already had to slow or shut down factories globally due to supply shortages.
Perhaps the biggest concern is over medical supplies. China produces and exports a large amount of pharmaceuticals to the U.S., including 97 percent of all antibiotics and 80 percent of the active ingredients used to make drugs here. Penicillin, ibuprofen, and aspirin largely come from China. Last month, the medical supply firm Cardinal Health recalled 2.9 million surgical gowns “cross contaminated” at a plant in China; the blood pressure drug valsartan also saw shortages recently, thanks to tainted active ingredients at one Chinese plant. The combination of supply chain disruptions and increased demand at hospitals if coronavirus spreads to the U.S. could prove devastating.
In a dark irony, most of the world’s face masks—now ubiquitous in China as a precaution—are made in China and Taiwan, and even for those made elsewhere, some component parts are Chinese-sourced. Shortages have led China to declare the masks a “strategic resource,” reserving them for medical workers. U.S. hospitals are “critically low” on respiratory masks, according to medical-supply middlemen. Lack of protective gear could increase vulnerability to the virus, and the one place on earth suffering from production shutdowns is the one place where most of the protective gear originates [emphasis added].