Taiwan Plans to Shift Medical Supply Chain Away from China

If you’ve got a moment, check your medicine cabinet right now. Take a minute, see what you have in there, and come back to this post.

When you looked in there, you probably saw some prescription meds. There may have been some over-the-counter options, such as ibuprofen or Tylenol.

You may even have some items from brands like Neuroscience and Pure Encapsulations to support your overall health and wellness.

What you may not know about many of those items is where the active ingredients originate. Over the past several years, China has become the global leader in pharmaceutical production. 

Although much of the research takes place in the United States, the ingredients come from China. In August, Taiwan decided to make a public show of strengthening ties with Americans by getting involved with a memo of understanding about creating more domestic medical supply manufacturing opportunities.

Why Does Manufacturing Need to Move Away from China?

When one country becomes entirely dependent on another for essential goods, what happens if the relationship sours?

If shipping disruptions create logistical challenges to deliver necessary items promptly, how can individual families get the products they need to survive?

After the COVID-19 lockdowns that started in January in China, it became clear that many countries were relying on the cheap production methods found there for many needs. If the Chinese weren’t manufacturing ingredients, the products couldn’t get made.

Taiwan shut down its Chinese ties to protect itself against COVID-19 infections. Their efforts have shown that the medical supply chain can survive when efforts are made to expand domestic supply chains.

Having a relationship with the United States for this effort makes sense. About 70% of the current biotech research and development talents in Taiwan received training in the U.S. for what they can do today.

Although China isn’t happy about this shift, its economy is one of the few growing globally. One market may sour, but another door always opens soon after because of their lower costs.