China's Dominance in US Pharmaceuticals Sparks Call for Supply Chain Overhaul

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General Joseph Dunford (L), chairman of the US Joint Chiefs of Staff, and Chief of the General Staff of the Chinese People's Liberation Army General Fang Fenghui shake hands after signing an agreement at the Bayi Building in Beijing on August 15, 2017. MARK SCHIEFELBEIN/AFP via Getty Images

America's growing dependence on China for essential medicines is raising new alarms in Washington, as a new report warns that the US could face serious danger if its pharmaceutical supply chain is disrupted.

Lawmakers and security experts say the risk goes far beyond hospitals and pharmacies, especially as senators warn that China-linked groups are helping build a global "Silk Road of crime."

According to the US Israel Education Association (USIEA), China currently supplies 41% of the Key Sourcing Materials used to make US-approved active pharmaceutical ingredients (APIs).

The group says China is the only supplier for at least one critical ingredient in 679 different medicines, making up 37% of America's total APIs, FoxBusiness reported.

Peter Pitts, a former FDA associate commissioner, said the US is vulnerable because most generic drugs—around 90% of those taken by Americans—are made overseas.

"If China decided one day to simply stop sending us pharmaceutical products... we'd be in very tough straits," he warned.

The report highlights how fragile the system already is. During the COVID-19 pandemic, a single plant in Shanghai shut down, causing America to suddenly lose access to almost all of its medical contrast agent.

This forced hospitals to delay important tests for heart problems, cancer, and strokes. The report also recalls a 2008 case when a faulty blood thinner from China killed 81 Americans.

USIEA argues that US inspectors often have little insight into how Chinese plants operate. When facilities receive advance notice of inspections, "logs get altered" and "expired supplies get moved," the report says.

New FDA Office Proposed to Shift Drug Production

To solve this, the organization is backing the creation of an FDA Abraham Accords Office.

The goal is to shift medicine production toward trusted partners such as Israel, the United Arab Emirates, Bahrain, and Morocco.

Supporters say these nations have strong medical industries and close ties with the US, making them good places for "friend-shoring."

While the supply chain issue grows, senators are also warning about China's expanding criminal ties.

During a recent Senate hearing, lawmakers described Chinese money brokers and Latin American cartels working together in what experts call a "Silk Road of crime."

These networks move fentanyl chemicals, launder billions of dollars, and even use wildlife and gold as currency.

According to SCMP, Senator John Cornyn said Chinese criminal groups "have become the go-to money launderers" for the cartels, while Senator Sheldon Whitehouse urged tougher rules to uncover hidden financial networks.

Experts at the hearing argued that Beijing has not done enough to stop these groups. They warned that the same trade and financial channels used for crime also support China's grip on critical industries—including pharmaceuticals.

USIEA says moving medicine production to trusted allies is now a matter of national security. "Ensuring access to essential medicines," the report states, "is an act of sovereignty."

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China, FDA

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