US Senate targets China’s drug supply grip

A bipartisan group of US senators introduced legislation to strengthen oversight of foreign ownership in the pharmaceutical sector, citing dependence on China as a national security risk. The proposal seeks greater transparency, supply chain resilience, and expanded pharmaceutical cooperation with India

Washington: A bipartisan group of US senators has unveiled legislation to increase scrutiny of foreign ownership in America’s pharmaceutical industry, warning that growing dependence on China for critical medicines and drug ingredients poses risks to US national security and public health.

The proposed Pharmaceutical Investment Oversight and Accountability Act, introduced by Senate Special Committee on Aging Chairman Rick Scott along with Ranking Member Kirsten Gillibrand and Senator Elizabeth Warren on Wednesday (local time), would require annual reports to Congress on foreign investment in pharmaceutical manufacturing and related technologies.

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Supporters said the measure is intended to improve transparency over who ultimately owns or controls companies that supply medicines to Americans. “The American people, and especially seniors, deserve to know who actually controls the medicines keeping them alive,” Scott said while opening the hearing.

Scott argued that Washington lacks a complete picture of foreign ownership across the pharmaceutical supply chain, including facilities that manufacture medicines, produce key ingredients or hold sensitive clinical data.

He warned that geopolitical tensions could expose vulnerabilities if critical supplies were disrupted. Gillibrand said the United States remained heavily dependent on China and India for key starting materials and active pharmaceutical ingredients used to manufacture many generic medicines.

She said stronger oversight was needed to understand the extent of foreign influence while ensuring that trusted international investment continues. “We must bolster federal oversight efforts and increase transparency on how foreign capital impacts American health care infrastructure,” Gillibrand said.

Several witnesses told the committee that China has expanded its presence beyond generic drug manufacturing into biotechnology research, clinical trials and pharmaceutical innovation, raising concerns about long-term US competitiveness and supply chain resilience.

Former Commerce Department official Nazak Nikakhtar urged Congress to tighten oversight of Chinese investments in US biotechnology companies. She argued that existing laws leave significant gaps, allowing some investments, licensing arrangements and data-sharing agreements to escape government review.

Stephen Ezell, vice president at the Information Technology and Innovation Foundation, said China has used industrial subsidies, aggressive pricing and acquisitions to build a dominant position across the pharmaceutical value chain. He called for stronger disclosure rules requiring companies operating in strategic sectors to identify their beneficial ownership and foreign control.

Rush Doshi, director of the China Strategy Initiative at the Council on Foreign Relations, said the United States had become increasingly dependent on Chinese suppliers for upstream pharmaceutical inputs used in hundreds of medicines. He urged Washington to diversify production, strengthen domestic manufacturing and expand cooperation with allies.

Speaking specifically about India, Ezell said New Delhi could become an important partner in reducing dependence on China. He suggested that pharmaceutical cooperation should become part of the broader US-India strategic partnership, alongside collaboration in semiconductors, artificial intelligence and critical minerals. He also said the US Development Finance Corporation could support pharmaceutical manufacturing in India through loan guarantees and other financing tools.