Our View

India Cannot Replace China: China Remains Indispensable to the Global Pharmaceutical Supply Chain

time：2025-06-09 source：CNBC

Sam Radwan, co-founder of ENHANCE International, was interviewed by CNBC on June 9, 2025, discussing China's position in the global supply chain.

China occupies a central position in the global pharmaceutical supply chain

  1. Irreplaceability: China dominates the global supply of active pharmaceutical ingredients (APIs), from simple painkillers to high-end drugs required for chronic pain treatment, all relying on basic components sourced from China. Even though India is seen as a potential alternative, 60%–70% of its APIs still originate from China. Currently, no country in the world can replace China's critical role in this supply chain.
  2. Risks of Supply Chain Disruptions: Relevant studies show that if China's pharmaceutical supply chain were disrupted, the United States would face drug and equipment shortages and price increases within three months, highlighting the strategic importance of Chinese supply.
  3. Core advantages: China's advantage lies not merely in cost, but more importantly in its scale of top-tier scientific research talent, well-established infrastructure, and mature technological accumulation—advantages that other countries cannot easily replicate in the short term. Moreover, China's investment in pharmaceutical R&D is twice that of the United States, far exceeding any other country.
  4. Production scale and expertise: China leads the world in both the scale and technical capabilities of pharmaceutical production, enabling it to meet the global demand for massive quantities of medicines. While regions such as Europe and Japan can provide supplementary capacity in certain specialized areas, they are not currently positioned to comprehensively replace China's role in the industry.

 

 

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