China is accelerating plans to cut its dependence on US pharmaceutical supplies as trade tensions show no signs of easing. After Donald Trump returned to the White House in January, Beijing's National Medical Products Administration instructed state-owned drugmakers to assess their exposure to US raw materials, lab equipment, and reagents.
The directive also extended to top hospitals, which heavily rely on advanced medical devices from companies like GE HealthCare Technologies (NASDAQ:GEHC) and Medtronic (NYSE:MDT). Early findings show that while basic medicines are largely produced domestically, critical high-end materials and equipment still come from the US, highlighting a major vulnerability China is now working to fix.
Although China already manufactures a large share of essential medical goods, replacing cutting-edge US products remains a complex challenge. Regulatory reviews will be needed before any substitutes are approved, meaning immediate changes are unlikely.