Will China Use Supply Chains as a Weapon in a Conflict with the U.S.?

The following content is sponsored by The Wellness Company.

U.S. Officials Fear the Supply Chain is China’s Secret Weapon

Over the last few years, the phrase “supply chain” has become one of increasing importance to everyone – from corporate leaders to government officials and to customers. Now it’s a phrase that is becoming important even to military leaders.

According to Barron’s:

The United States worries that China will use its power in global supply chains as an additional weapon to advance its political and military might, a report released Wednesday showed.

The “Annual Threat Assessment” issued by the Director of National Intelligence said China is already using its supply chain dominance to force foreign companies and countries to transfer technologies and intellectual property to it.

The Pandemic Showed Just How Vulnerable Our Supply Chains Are

The truth is that the United States has left itself incredibly vulnerable to supply chain manipulation by China.

More from Barron’s:

The disruptions of the Covid-19 pandemic showed the world the importance of supply chains — the way components of products make their way from myriad sources around the world through various countries for preliminary and final assembly before products reach the market.

The pandemic demonstrated how the disruption of a single factory in China or elsewhere could halt the work of major industrial operations around the globe.

The “Annual Threat” report singled out China’s dominance in technology sectors including semiconductors, critical minerals, batteries, solar panels, and pharmaceuticals.

Chinese Domination of the Pharmaceutical Supply Chain

American consumers, like most global consumers, are reliant on a pharmaceutical supply chain that is heavily controlled by the Chinese.

As Sen. Marco Rubio (R-FL) pointed out in a report back in 2019, pre-COVID:

Chinese policymakers aim to make China’s domestic biotechnology industry the medicine cabinet of the world. To a large extent, they have already succeeded in achieving dominance in the lower end of the pharmaceutical and medical technology value chain. 80 percent of the active pharmaceutical ingredients (API) of drugs in the American market come from overseas, primarily from China and India. In older drugs with low profit margins, Chinese drugmakers have often taken over production entirely from Western companies. Chinese manufacturers are already the sole suppliers of many API and lower-end drugs.

Since COVID, this reliance on China for prescription drugs has only gotten worse. As tensions escalate between the U.S. and China, the possibility that the Chinese could use this leverage to their advantage becomes more and more concerning, which a recent article from the pharmaceutical industry news site PharmaNewsIntelligence explained:

Experts suggest that the growth of the US and China pharmaceutical trade poses a serious risk as the adversarial relationship could result in supply chain closures. It’s not unrealistic that pharmaceuticals could be used as a weapon in a trade war, as was suggested in past Chinese strategic talks. Additionally, the FDA has less oversight over Chinese facilities, which generates questions about the safety of foreign manufacturers.

How Do You Protect Against Prescription Drug Shortages? BE PREPARED!

So, if our leaders aren’t stepping up to break China’s stranglehold on prescription drugs, what can individuals do to stay safe and healthy? The solution is to be prepared. That’s where The Wellness Company comes in.

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“I’ve strongly recommended “stockpiling” critical medications including antibiotics since the turn of the century. This has been an incredible investment as many friends, family, and patients have benefited. Now, in the winter of 2024, this recommendation is even more crucial.”

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