Original title: American media article: Trump is counting on India. India depends on China to
import hydroxychloroquine from the United States not only depends on India ’s willingness to sell, but also depends on whether Indian suppliers can ensure that raw materials for the drug are obtained from China.
American Fortune Magazine article on April 8, original title: Trump is counting on India to export an unproven treatment for new coronary pneumonia, but the supply chain depends on China and the
United States want to import more hydroxychloroquine A proven antimalarial drug for the treatment of new coronary pneumonia. Last weekend India banned the export of hydroxychloroquine to foreign countries. Trump warned that India will face retaliation from the United States if it insists on the ban. This week India announced that it would relax its export ban for humanitarian reasons once domestic demand is met. However, US imports depend not only on India ’s willingness to sell, but also on whether Indian suppliers can ensure that raw materials for the production of the drug are obtained from China.
To fill the surge in demand for this drug, the US is counting on Indian manufacturers, who rely on China to provide the drug ’s active ingredient API. In 2019, 47% of the US demand for this medicine will be met by Indian pharmaceutical companies, and 90% of the API used by India to produce this medicine comes directly from China. Overall, 70% of the API needs of Indian pharmaceutical companies depend on Chinese suppliers.
China’s epidemic blockade measures have severely damaged the drug supply chain, and many API factories were temporarily interrupted in February and early March. “India and China are intertwined, and any interruption from Chinese suppliers will affect India’s ability to manufacture generic drugs for its own country and export markets,” said James Duffy, a New York lawyer who is familiar with the drug supply chain.
A number of Indian pharmaceutical companies said that API supply from China had “actually stalled” for several weeks. “India is facing a shortage caused by the interruption of Chinese production,” Duffy said. “The most convincing reality is that India has strengthened relevant export restrictions in the past month, which implies that Indian pharmaceutical companies are unable to supply domestic and foreign markets at the same time.”
India eased export restrictions It shows that with Beijing’s efforts to restore the economy, the problem of supply chain disruption is being alleviated. Parit, an economist at the National University of Singapore, said that India ’s removal of some export restrictions shows its confidence in increasing production. “Unless you are confident that the supply chain, especially API supply from China, will be restored, India will not consider lifting export restrictions.” ( Author Grady McGregor, Ding Yuqing translation)