Hearings to examine foreign dependence, focusing on China and America's drug supply

US-China Technology CompetitionSenate Aging (Special) · 2026-03-11 · 119th Congress
The Senate Special Committee on Aging held this hearing to examine how China came to dominate the manufacturing of active pharmaceutical ingredients (APIs) and key starting materials used in generic drugs, and what risks that dependence poses to U.S. Begins at 0:16:42
Transcript
Highlights

Title

China's control of America's generic drug and pharmaceutical supply chain

Purpose

The Senate Special Committee on Aging held this hearing to examine how China came to dominate the manufacturing of active pharmaceutical ingredients (APIs) and key starting materials used in generic drugs, and what risks that dependence poses to U.S. national security and patient safety. It was the latest in a series of committee hearings and investigations — following earlier sessions on foreign generics and domestic manufacturing and the bipartisan CLEAR Labels Act introduced in January — with witnesses including a former member of Congress, author Gordon Chang, "China Rx" author Rosemary Gibson, and Duke Margolis Institute fellow Dr. Harjivan. Begins at0:16:42

Who spoke

Chair Rick Scott (R-FL)0:16:42: Opened by arguing China holds "sole control" over the building blocks of essential medicines and that domestic API production has collapsed from 84% of the U.S. market in 2002 to 37% today0:19:08; cited 37 Chinese factories that shut down during COVID, causing U.S. shortages of sedatives and cancer drugs0:19:40; closed the hearing warning the dependence is "intentionally engineered" and pointing to the CLEAR Labels Act as a first step1:24:50.

Ranking Member Kirsten Gillibrand (D-NY)0:20:36: Said China's dominance stems from subsidies, lax environmental rules, and low labor costs, but also from a U.S. "race to the bottom" that rewards cost over quality0:21:35; urged Congress to empower FDA oversight and adopt the National Security Commission on Emerging Biotechnology's recommendations0:23:51; in a later Q&A round pressed witnesses on biotech leadership, federal procurement reform, and lobbying against reshoring0:57:501:01:331:10:38.

Witness, former member of Congress (eight years in the House, formerly chaired the House Foreign Affairs Subcommittee on Asia and the Pacific; not named in transcript)0:24:51: Said China required U.S. drugmakers to cede up to 51% ownership and board seats to state-linked entities and to surrender drug formulas0:26:08; proposed requiring unannounced 24/7 FDA-standard inspections for any country exporting drugs to the U.S. and 100% U.S.-made military medicines0:28:050:29:04.

Gordon Chang, author and CCP commentator0:29:32: Said China's regime considers itself at "people's war" with the U.S. and has a 100% monopoly on production of some pharmaceuticals it has not yet weaponized0:31:16; said 100 of America's most-used antibiotics rely on ingredients from a single Chinese factory and 91% of U.S. prescriptions are generics largely sourced from China0:31:310:32:38; recommended Section 232 tariffs, the Defense Production Act, and strict liability for foreign-made drug damages0:34:291:17:18.

Rosemary Gibson, author of "China Rx"0:35:00: Presented Department of War generic-drug testing showing 15% of 13 drugs tested failed basic quality standards, with some containing thallium, arsenic, and carcinogens0:37:260:38:00; recommended rebuilding domestic antibiotic capacity and directing federal agencies to use quality data in procurement0:38:470:39:13; described a 2020 executive order prioritizing U.S.-made generics that trade groups lobbied against the same day China's president called for supply-chain "stability"1:13:551:14:18.

Dr. Harjivan, visiting fellow, Duke Margolis Institute for Health Policy0:40:44: Proposed an "allied life sciences platform" built on five pillars — supply-chain transparency, predictable federal procurement, allied manufacturing capacity, innovation standards, and long-duration capital0:41:440:44:03; said VA/DOD hospitals often pay widely varying prices for identical products, costing taxpayers hundreds of millions0:43:07; argued remote, real-time quality monitoring could reduce reliance on in-person inspections1:22:02.

Sen. Tommy Tuberville (R-AL)0:45:58: Asked how to reduce China's regulatory leverage and whether tariffs could help0:46:280:49:00; cited a Birmingham-area pharmaceutical company, Oxford Pharmaceuticals, that testified in November about offshore manufacturing0:49:32.

Sen. Ashley Moody (R-FL)0:52:17: Cited a 61% decline in domestic API manufacturing facilities over the past decade and noted roughly one-third of FDA import alerts cite Chinese facilities0:53:450:54:14; highlighted a $150 billion administration investment announced in December for U.S. pharmaceutical manufacturing0:54:40.

Key moments

Chair Scott said domestic drug production fell from 84% of the U.S. market in 2002 to 37% today, and 80% of APIs used in essential medicines have no U.S. source0:19:08.

Gordon Chang said China supplies at least one key starting material for 679 active pharmaceutical ingredients and that the Defense Department found 27% of its medications were 100% dependent on China0:32:380:33:05.

Rosemary Gibson's Department of War testing program found 15% of 13 generic drugs tested failed basic quality standards, including toxins like thallium and arsenic in some products0:37:260:38:00.

Gibson testified that China warned in June 2025 trade talks that restricting pharmaceutical raw materials would make the U.S. situation "much worse" than for critical minerals0:35:58.

Chang said the most widely used antibiotic in America is made from four key starting materials produced almost entirely in China, and the U.S. gets 45% of its penicillin from China0:33:050:33:35.

The former-congressman witness said U.S. drugmakers were required to relinquish up to 51% ownership to Chinese state-linked entities and surrender drug formulas or have them stolen0:26:08.

Gibson described a 2020 executive order prioritizing U.S.-made generics in federal procurement that remains unimplemented, and noted trade-group opposition arrived the same day it was signed, followed two days later by a Chinese statement on supply-chain "stability"1:13:551:14:18.

Chang proposed making drug manufacturers strictly liable for damages from imported pharmaceuticals, citing roughly 150 U.S. deaths in 2008-09 from adulterated Chinese-made heparin1:17:181:17:49.

Dr. Harjivan said VA and DOD hospitals often pay widely varying prices for identical drug products, costing taxpayers hundreds of millions annually without securing the supply chain0:43:07.

Sen. Moody cited a 61% decline in U.S. API manufacturing facilities over the past decade and said roughly one-third of FDA import alerts involve Chinese facilities0:53:450:54:14.

Metadata

CommitteeSenate Aging (Special)
Chamber / CongressSenate · 119th Congress
Date2026-03-11
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript154 caption blocks · 9,859 words · 1:25:45 runtime
EventCongress.gov 338043