China’s Role in Pharmaceuticals: Balancing National Security and Economic Interests

In recent years, the US has been considering separating itself from any dealings with the Chinese economy, and the healthcare sector is the latest to see potential repercussions. There is a proposal to prevent US drug companies from outsourcing tasks to Chinese companies, which has raised concerns among many American pharmaceutical firms.

If the BIOSECURE bill is passed, these companies may not be able to meet demand or complete clinical trials. Replacing Chinese capacity would be a challenging and costly endeavor for big Western drug companies, potentially taking at least five years. For biotech startups that rely on Chinese partners for research and manufacturing, the bill poses an existential threat, affecting the development of new drugs.

The idea of “national security” arguments is complex because almost anything could potentially be connected to this vague concept. The question arises whether weakening China reduces the likelihood of war by diminishing the power of the adversary or if it increases the risk of war due to wealthy countries having more to lose. The effectiveness of nationalism in comparison to internationalism remains a point of contention.