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Robert Gottliebsen

Reliance on China for medicines an emergency

Robert Gottliebsen
Preparing a vaccination shot. Picture: AFP
Preparing a vaccination shot. Picture: AFP

The US has declared a national emergency as a result of the spread of COVID-19. But it really needs to call a second emergency — its dependence on China for many essential medicines.

In the now rapidly disappearing era of unrestrained globalism the US found it cheaper to access vital medicines from China and it closed many of its manufacturing facilities. And so, while the US was building up its defence with an eye on China, it has become dependent on China for many of the medicines both its troops and the general population need, especially in wartime.

Australia in trying to isolate itself from the COVID-19 pandemic has discovered that there are advantages of being an island. But, as previous generations of Australians discovered, as an island nation an essential part of your defence is having a base of self-reliance.

We forgot those lessons in many areas and we are now also dependent in China for a number essential medicines.

I was first alerted to this when I found the local pharmacy was having difficulty gaining supplies (long before people started panic buying), not realising at the time that we are part of this US strategic mistake. And so, without fuss, but very firmly, the Chinese are reminding the Americans of their dependence on China, and we too will need to watch our step.

Xinhua is China’s state-run media agency, so its editorials have clear government blessing.

When Xinhua raises the threat of cutting off drugs to the US if the US continues to blame China for the pandemic, it’s a threat we also need to take seriously.

According to extracts from a Fox News translation, Xinhua says: “As a responsible major country, China has from the start acted openly and transparently in releasing relevant information to the world and seeking international co-operation to prevent the spread of the epidemic worldwide.”

And: “We should say righteously that the US owes China an apology. The world owes China a thank you.”

Xinhua says China could impose controls on the export of medicine, plunging the US into “the mighty sea of coronavirus”.

This weakness in the US (and Australia) has never been widely recognised.

Rosemary Gibson is a co-author of “China Rx: Exposing the Risks of America’s Dependence on China for Medicine” and last year told the US-China Economic and Security Review Commission: “National health security and national security are threatened by US dependence on China for thousands of ingredients and raw materials to make our medicines. China’s aim is to become the pharmacy to the world, and it is on track to achieve it. China’s dominance is global.

“As China gains more control over America’s supply of medicines, it could charge American consumers and patients’ higher prices, or extort concessions from the federal government to keep prices affordable,” she said.

“This is not mere speculation. China’s domestic companies formed a vitamin C cartel in the early 2000s and increased prices up to 600 per cent, which increased the cost to American consumers and businesses.

“The nation’s health security is in jeopardy. The US can no longer make penicillin. The last US penicillin fermentation plant closed in 2004. Industry data reveal that Chinese companies formed a cartel, colluded to sell product on the global market at below market price, and drove all US European, and Indian producers out of business. Once they gained dominant global market share, prices increased.”

Meanwhile the cash flow and expertise that comes from such a manufacturing base has enabled China to be a world leader in the development of medicines.

Xinhua says: “Science and technology are humanity’s most powerful weapon against diseases. China has built a powerful arsenal by giving full play to indigenous solutions.

“It has capitalised on the use of technology, big data and AI for COVID-19 preparedness, readiness and response.

“It has launched a new batch of programs to develop testing products for COVID-19, including more sensitive and rapid detection kits for nucleic acid and antigen and antibody testing.

“It promoted treatment with traditional Chinese medicine (TCM). TCM has been involved in treating 92.5 per cent of confirmed COVID-19 cases nationwide, as studies confirmed that TCM and Western medicine work better when combined than used independently in improving the recovery rate and reducing the mortality rate.”

But there is another side to China’s expertise in this area and what happened in Wuhan, where the epidemic started.

There is no evidence to link the development of COVID-19 to the Wuhan Institute of Virology, which is developing deadly viruses. Nevertheless, among the Wuhan Institute chiefs is a former head of China’s Academy of Military Medical Sciences who calls biomaterials the “strategic commanding heights” of warfare.

Robert Gottliebsen
Robert GottliebsenBusiness Columnist

Robert Gottliebsen has spent more than 50 years writing and commentating about business and investment in Australia. He has won the Walkley award and Australian Journalist of the Year award. He has a place in the Australian Media Hall of Fame and in 2018 was awarded a Lifetime achievement award by the Melbourne Press Club. He received an Order of Australia Medal in 2018 for services to journalism and educational governance. He is a regular commentator for The Australian.

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Original URL: https://www.theaustralian.com.au/business/reliance-on-china-for-medicines-an-emergency/news-story/2a8eded251ba10c109ddec1f32fccd26