FX.co ★ Beijing’s grip on critical medicines turns up heat in US-China trade conflict

China appears to be expanding its leverage in the ongoing economic rivalry with the United States, not just through its dominance in rare earth metals, but now through its quiet control of pharmaceutical supply chains.

According to a recent Financial Times report, the United States depends heavily on China for key active pharmaceutical ingredients used in nearly 700 essential drugs. These include antibiotics, cardiovascular treatments, cancer therapies, and allergy medications, all of which are critical to public health.

For years, Washington assumed that the Trump administration's aggressive trade policies and tariff pressures gave the US the upper hand in its economic relationship with China. In reality, Beijing holds far more cards than it seemed. China's near-monopoly on crucial drug components means that if exports are disrupted, some US manufacturing lines could quickly come to a standstill.

While Washington has been seeking to reduce dependency through sanctions, import tariffs, and proposals to limit Chinese-made pharmaceutical imports, Beijing is not backing down. On the contrary, China is doubling down on its strategic positions, advancing in high-tech sectors and developing alternatives to US leadership in artificial intelligence and biotechnology.

In a scenario where access to antibiotics or cancer drugs hinges on China's export policies, the trade conflict takes on a new dimension. Although American policymakers are considering bringing pharmaceutical production back to the United States, the risk of China weaponizing supply chains is too large to ignore.