Transcript of Ranking Member Khanna’s Opening Statement from Hearing on How China is Cornering the Market on Our Medicines
WASHINGTON – The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party held a hearing titled From the Science Lab to the Medicine Cabinet: How China is Cornering the Market on Our Medicines.
The following witnesses provided testimony:
- Dr. Jacob Becraft, CEO and Co-Founder, Strand Therapeutics Inc.
- Mr. Patrick Cashman, President, USAntibiotics
- Mr. Francisco Gimenez, Partner, 8VC
- Dr. Marta E. Wosińska, Senior Fellow – Economic Studies, Center on Health Policy at Brookings
Below is a transcript of the opening statement from Ranking Member Ro Khanna (D-CA).
Thank you, Mr. Chairman and thank you for convening this hearing, which is of bipartisan interest. Thank you to our witnesses for appearing before the committee today.
Medicines are not just another traded commodity. They are the foundation of public health.
When a geopolitical rival controls the supply of critical medicines, it creates intolerable risks.
Over the past two decades, global pharmaceutical supply chains have become concentrated in China, especially the raw materials and chemicals that are used to make medicines.
Forty-one percent of key-starting materials used in U.S.-approved medicines come solely from China.
One in 10 critical inputs, China's market share exceeds 99%.
The situation with finished pharmaceuticals is similarly dire.
The United States relies on China for over 90% of antibiotics imports, including penicillin and streptomycin.
We get 99% of our prednisone and inflammatory anti-inflammatory drug from China.
This kind of concentration creates a dangerous choke point.
This level of dependance poses risks for drug availability, patient safety, supply chain resilience and economic security.
Beijing has designated biotechnology and pharmaceuticals as key strategic industries and is investing heavily in medicines of the future.
In 2024, China accounted for nearly a quarter of the global pipeline of first-in-class drug candidates.
If this trajectory continues and we do not act, the world could face dependance on China not only for raw materials, for medicines, but also for new and innovative drugs.
At the same time, we also must acknowledge U.S. policy in shaping these outcomes.
The United States cannot address supply chain vulnerabilities if our relationship with China is managed poorly.
The unpredictability encourages Beijing to lean even harder on strategic leverage. It has developed across industries.
Now, if we are serious about de-risking from China, we have to be serious about rebuilding American strength. Pharmaceutical manufacturing and drug development depend on long-term investment, scientific research, and stable economic policy.
This administration's cuts to federal agencies that support research and regulatory oversight weaken the foundation of American pharmaceutical leadership.
For decades, agencies like the NIH and FDA have helped make the U.S. the global center of pharmaceutical innovation.
NIH investments in biomedical research, clinical trials, and regulatory science have supported the discovery of life saving medicines.
From 2000 to 2023, NIH research supported 59% of new drug approvals in the U.S.
But the Trump administration has levied vicious attacks on the agency.
They canceled 5,844 grants, which include clinical trials and cancer research, and Trump has proposed slashing $18 billion, or 40% of the NIH budget.
Thousands of career NIH staff have been forced out. The Congressional Budget Office estimates that a 10% reduction in NIH funding reduces new drug development by about 4.5%.
The FDA has lost 20% of its staff under Trump, including facility inspection staff and staff who test samples from batches of pharmaceutical ingredients.
The Select Committee has done investigations focused on the safety of drugs coming from China, and we rely on FDA inspectors in China to address these concerns.
Ultimately, addressing pharmaceutical supply chain vulnerabilities will require serious, sustained strategy to reduce dependance, rebuild capacity and ensure that medicines Americans need are made in secure, resilient, and trusted supply chains not controlled by Beijing.
That means strengthening research at home. It means working with allies and partners to diversify supply chains.
It means building an economic environment that encourages companies to invest in production and innovation in the United States.
Today's hearing is an important opportunity to understand the scope of these challenges to ensure that Beijing does not control the supply chain and to explore solutions that protect American patients and America's security.
Thank you, Mr. Chairman. I yield back.
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