American media has been carefully watching whether the trade conflict did harm China’s supply of drugs to the United States and lead to rate increases as a result of Beijing and Washington’s taxes on each other’s goods this quarter.
China announced that it would impose a 15 % tariff on eight different US energy products, including coal, liquified natural gas, and coking coal, after US President Donald Trump imposed a 10 % tariff on all Chinese goods on February 4. It also imposed a 10 % tax on 72 forms of US products, including agricultural devices, simplistic oil, large displacement trucks and electric cars, from February 10.
Trump stated that he is “in no rush” and will communicate with Chinese President Xi Jinping when necessary.
The American Hospital Association informed Trump on February 4 in a notice to him that the new US tariffs will have an impact on the supply of Chinese medicines, including cancer and heart treatments and antibiotics like antibiotic, according to Reuters. According to the organization, China produces almost 30 % of the raw materials needed to produce essential medicines.  ,
Four lobbyists and one medical professional reportedly contacted the Trump management to request that vital drugs be free from fresh tariffs a few weeks ago according to the Reuters report.
Karen Andersen, a Morningstar scientist, was quoted as saying in the statement that although major drug manufacturers typically produce their biggest hits in the US or Europe, they typically make their basic hit items in the US or Europe.  ,
She claimed that if the US imposed tariffs on Europe, it would be more disturbing for the biggest drug manufacturers in the world.  ,
But, Alex Telford, a San Francisco-based biology writer, holds a different perspective. Next December, he published an article titled,” May all our medicines come from China”?
Telford claims that while many people believe that the main ingredient in China’s medical industry is the natural chemical materials, there is a steady increase in Taiwanese companies sourcing really novel drugs.
He points out that Chinese companies are now responsible for 28 % of new trial starts, compared with 34 % in the US and 23 % in Europe, and that they are particularly active in making drugs for early-stage ( phase I ) clinical trials, oncologt and cell and gene therapy.  ,
Citing a Bloomberg statement, he says that:  ,
- US pharmaceutical firms AbbVie Inc. and Bristol-Myers Squibb Co. have collaborated with Chinese firms in Shanghai.
- Roche Holding AG from Switzerland, Bayer AG from Germany and Eli Lilly &, Co. from the US have opened or may open incubators for Chinese businesses,
- Over the next five times, Pfizer may spend US$ 1 billion in China.  ,
He claims that the key factors are:
- regulation measures,
- returning skills,
- business evolution, and
- opportunity financing.
It has remained to be seen whether US manufacturers of pharmaceuticals and ingredients may experience price increases brought on by Trump’s taxes or whether they can obtain the goods from markets like India, Southeast Asia, and Europe.  ,
In 2023, the world’s top 10 pharmaceutical exporters were Germany ( US$ 120 billion ), Switzerland ( US$ 99 billion ), the US ( US$ 90 billion ), Belgium ( US$ 83 billion ) and Ireland ( US$ 72 billion ).
In 2024, China’s full imports of northern drugs amounted to US$ 54 billion, up 5.7 % from the past month, according to the China Chamber of Commerce for Import and Export of Medicines and Health Products.  ,
China’s exports of pharmaceutical goods ( drugs and tools ) to the US grew 11.7 % to US$ 19 billion last year from 2023. China even exported US$ 8.4 billion of medical products to India, US$ 5.5 billion to Japan and US$ 4.8 billion to Germany.  ,
Biosecure Act ,
Now, the US does not stop American pharmaceutical companies from forming partnerships with Taiwanese counterparts. Additionally, it does not forbid US businesses and individuals from funding Chinese biotech companies.  ,
In earlier 2023, the Biden administration considered banning US purchases from entering China’s biotech industry, alongside with silicon, AI and quantum areas. However, it removed biotech from the list of targeted industries in August 2023 because it believed that single China’s chip, AI, and quantum sectors do pose a threat to the country’s national security.  ,
Last September, the US House of Representatives passed the Biosecure Act, which would necessitate the US national government and its firms not to use products or service provided by five Chinese firms, which include BGI, MGI, WuXi Biologics, Wu Xi AppTec and Complete Genomics.  ,
The legislation would also prevent federal funds from going to biotech companies linked to five foreign adversaries: China, Russia, Iran, North Korea and Cuba. The Senate is still discussing the legislation.  ,
In a letter to then-Commerce Secretary Gina Raimondo on January 9 this year, John Moolenaar, chairman of the House Select Committee on the Chinese Communist Party, wrote that” we think your organization should look into enforcing an export control requirement for US biopharmaceutical entities seeking to work directly with the People’s Liberation Army ( PLA ).”  ,
According to Moolenaar, the fierce biotechnology battle between China and the US will have effects on both the future of healthcare and the security of American medical data.  ,
Yong Jian contributes to the Asia Times. He is a Chinese journalist who specializes in Chinese technology, economy and politics.  ,
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