How the U.S. ceded control of drug supplies to China

Acetaminophen is one of a slew of life-or-death ingredients for medicines now produced in significant amounts by China. Many of these are commodity chemicals that U.S. makers found unprofitable to produce. China makes about 70% of the acetaminophen used in the U.S., the Commerce Department and analysts estimate.

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The dependence, exposed by the supply-chain disruptions and a surge in buying brought on by the pandemic, has raised concerns among Trump administration officials, lawmakers and corporate chiefs.

A $765 million government loan to Eastman Kodak Co. last month was targeted at reducing America’s reliance on other countries, including China, for drugs, according to the U.S. International Development Finance Corp., which provided the loan. Kodak will use the funds to produce ingredients for generic drugs in the U.S. and said it expects the production of pharmaceutical ingredients to make up 30% to 40% of its business over time.

Other important pharmaceutical ingredients made in China include the blood anticoagulant heparin, of which 80% of the global supply is made in China, and even higher levels of the world’s antibiotics, according to estimates from industry experts at the Council on Foreign Relations, a think tank; the U.S.-China Economic and Security Review Commission, created by Congress to study national security and trade; and others.

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