![]() This growth is overwhelmingly driven by US shipments of immunological products, such as steroids used to treat or manage Asthma, dosed and packaged for use in Chinese hospitals and by consumers. US exports of pharmaceuticals to China have also been increasing. ![]() As a result, many of Beijing’s pharmaceutical ventures focus on innovative, novel treatments for chronic diseases and cancers. ![]() As China’s population has grown wealthier and its median age increases, the prevalence of diseases such as cancer, diabetes, and heart disease have also grown. These goals were recently reaffirmed with nine PRC agencies jointly issuing the “ 14th Five-year Plan for the Development of the Pharmaceuticals Industry” which called for increased innovation and expanded Chinese participation in global regulatory developments.Ĭhina is prioritizing a domestic pharmaceutical industry partly in preparation for its own population’s burgeoning public health issues. Simultaneously, Chinese regulators have implemented policy changes reducing the cost of domestic drug development while also bringing their regulatory framework in line with global standards, allowing Chinese producers to competitively participate in the global pharmaceutical trade. The import growth is largely explained by the importance Beijing has placed on biotech as a part of an effort to advance China’s manufacturing sector up the value-added chain by targeting high-tech fields, such as the pharmaceutical industry. In 2022 the US imported $7.2B of such medicaments from China, whose imports now comprised 7.9 percent of total US imports, up from 1 percent in 2020. The majority of recent growth has instead been driven in a surge of imports of drugs dosed and ready for use by American consumers and hospitals. But bandages aren’t behind the rise in imports. Over the past decade Chinese shipments have, on average, comprised 40 percent of total imports. China is now the US’ fourth largest supplier of medicines after Ireland (19.8 percent), Germany (10.8 percent), and Switzerland (10.7 percent).Ĭhina has been a longstanding supplier of bandages to the US. In two years China’s import share has more than doubled with the US going from buying just under 2.5 percent of its total pharmaceuticals from China in 2020 to more than 6 percent last year. Since 2020, US imports of Chinese pharmaceuticals (defined by the US tariff code to include packaged medicaments, vaccines, blood, organic cultures, bandages, and organs) has grown by 485 percent, going from $2.1B in 2020 to $10.3B in 2022. Still, the US ought to prioritize a regular supply-chain mapping exercise in order to provide policymakers ample breathing room to act well before dependence on China becomes a material risk to the US healthcare system.Ĭhinese firms have become major suppliers of US pharmaceuticals. However, despite the increase and the tone of recent rhetoric around the US-China pharmaceutical trade, China does not have a stranglehold on the US medicine supply chain. The emergence of this important, new supply chain linking both economies has implications for economic interdependence and national security. The trade is broadly balanced-the US imported $10.2B while exporting $9.3B to China-and is driven by advanced medicines such as cancer treatments and antibiotics. This growth is not the result of a surge in cheap, Chinese imports. ![]() Over the past five years, two-way trade of pharmaceuticals has grown from composing just 0.6 percent of the trading relationship to nearly 3 percent of its total value. Pharmaceutical products have emerged as one of the largest winners. Yet, in other areas trade between them is reaching new heights. In some areas, like aircraft and their component parts, trade between the two countries has shrunk considerably. The drivers of US-China trade are shifting in the wake of the US-China trade war and the Covid-19 pandemic. ApThe US is relying more on China for pharmaceuticals - and vice versa
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