New Delhi, May 15 (IANS). America’s pharmaceutical and biotech sector has become highly dependent on the Chinese supply chain, due to which it is facing a big threat of supply disruption. This warning has been given in a report.
In an article published in America’s online magazine ‘The National Interest’, giving the example of blood thinner drug ‘Heparin’, it is said that American patients are highly dependent on China for this medicine.
According to the report, about 70 percent of the supply of heparin used in America comes from China. Two plants manufacturing heparin API in the US – Wisconsin-based SPL and Ohio-based Smithfield Bioscience – have now become subsidiaries of Chinese companies. The article states that the US has no independent, commercial-scale domestic producer of this drug left.
The report also mentions an incident in 2007-08, when at least 149 American citizens died due to contaminated heparin coming from China. This contaminated supply had reached 11 countries. The investigation traced its origin to the city of Changzhou in China’s Jiangsu province, but Chinese authorities denied this claim and did not allow the US Food and Drug Administration (FDA) to conduct a criminal investigation. No one was held responsible in the case.
The article says that despite this tragedy of 2008, America did not take any major steps to reduce its dependence. On the contrary, American companies are moving out of the production of this drug, due to which dependence on China is increasing further.
According to the report, “Production sources are decreasing rather than increasing. With each new ban, the dominance of Chinese API producers is becoming stronger and the treatment of American patients is becoming dependent on a supply chain that is not controlled by Washington.”
In the article, citing a report of ‘Rhodium Group’ dated May 2026, it is said that China is busy strengthening its hold on the global supply chain under its 15th five-year plan. Between 2021 and 2024, the number of such products has increased from 192 to 315, in which China has a strong dominance.
China’s 15th five-year plan, released in March 2026, includes biomanufacturing among areas where it aims to achieve a “decisive breakthrough”. This means that China wants to further strengthen its position in the pharmaceutical value chain.
The report also said China has already used its strong position in the rare earth and fertilizer sectors to put pressure on trading partners, leading to steep price increases.
According to the article, if there is a major flaw in the production quality or the diplomatic dispute between the US and China escalates, China may stop the supply of heparin, which will have the most serious impact on dialysis patients.
The report also mentions the US executive order issued in August 2025, under which the plan to create ‘Strategic Active Pharmaceutical Ingredients Reserve’ (SAPIR) was started. Its objective is to create six months’ API stock for about two dozen essential medicines, in which domestic production will be given priority.
However, the article said that the US government’s major ‘Flow-BARDA’ initiative is mainly based on continuous-flow chemistry technology, which is suitable for small chemical drugs, but it is not possible to produce the biological drug heparin made from animal tissues.
–IANS
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