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U.S. think tanks warn China control of pharma ingredients could boost leverage

China supplies about 40.0% of global active pharmaceutical ingredients, while nearly 41.0% of key starting materials for US-approved drugs come exclusively from China, according to cited research.

Reported · Written up by our desk · Trade & Tariffs

Washington policymakers are increasingly focused on upstream pharmaceutical dependencies, with US think tanks warning that China’s role in supplying key drug ingredients could become a new source of geopolitical leverage.

In particular, the story cites Chinese government data showing China provides 40.0% of global active pharmaceutical ingredients, and cites the Washington-based Brookings Institution saying nearly 41.0% of key starting materials for drugs approved for use in the United States are sourced exclusively from China.

The Council on Foreign Relations warned in a report last month that dependence on Chinese pharmaceutical inputs could give Beijing leverage comparable to its prior dominance in rare earths.

The Atlantic Council urged the US and partners including the European Union, India, and Mexico to coordinate efforts to strengthen medical trade and supply chain resilience, with the goal of reducing reliance on China, the story says.

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