New Delhi, May 15: The U.S. pharmaceutical and biotech sectors have become highly reliant on Chinese supply chains, facing significant risks of disruption, according to a recent report.
An article published in the online magazine ‘The National Interest’ highlights the example of the blood thinner drug Heparin, emphasizing the heavy dependence of American patients on China for this medication.
The report states that approximately 70% of Heparin used in the U.S. is sourced from China. Two plants in the U.S. that produce Heparin API—SPL in Wisconsin and Smithfield Biosciences in Ohio—have become subsidiaries of Chinese companies. The article notes that the U.S. no longer has any independent, commercially viable domestic producers of this drug.
The report also references the 2007-08 incident when contaminated Heparin from China resulted in the deaths of at least 149 American citizens. This tainted supply reached 11 countries. Investigations traced the source to Changzhou in Jiangsu Province, China, but Chinese authorities denied these claims and did not permit a criminal investigation by the U.S. Food and Drug Administration (FDA). No one was held accountable for the incident.
Despite this tragedy in 2008, the U.S. has not taken significant steps to reduce its dependence. Instead, American companies are exiting the production of this drug, further increasing reliance on China.
According to the report, “The sources of production are decreasing rather than increasing. With each new lockdown, the dominance of Chinese API producers is strengthening, and American patients are relying on a supply chain that Washington cannot control.”
The article cites a May 2026 report from the Rhodium Group, indicating that China is working to strengthen its grip on global supply chains under its 15th Five-Year Plan. Between 2021 and 2024, the number of products where China holds significant dominance has risen from 192 to 315.
China’s 15th Five-Year Plan, released in March 2026, includes biomanufacturing as a key area for achieving “decisive success.” This indicates China’s intent to bolster its position within the pharmaceutical value chain.
The report also mentions that China has already leveraged its strong position in rare earth and fertilizer sectors to exert pressure on trading partners, leading to significant price increases.
According to the article, if there are major quality issues in production or if diplomatic tensions between the U.S. and China escalate, China could halt the supply of Heparin, which would severely impact dialysis patients.
The report references an executive order issued in August 2025, which initiated plans to create a ‘Strategic Active Pharmaceutical Ingredients Reserve’ (SAPIR). This aims to establish a six-month stockpile of APIs for about two dozen essential medications, prioritizing domestic production.
However, the article notes that the U.S. government’s primary ‘Flow-Barda’ initiative is mainly based on continuous-flow chemistry technology, which is suitable for small chemical drugs but not feasible for producing biological drugs like Heparin derived from animal tissues.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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