President Trump invokes Defense Production Act grants the president the ability to direct the production of certain equipment.
President Trump encourages US pharmaceutical industry to end drug production in China and return drug manufacturing to the United States.
COVID-19, has U.S. officials on an accelerated mission to bring the production of life saving medicines back to U.S. shores and away from the control of the Chinese government.
Das Nobel, founder and CEO of the New York based product and supply service MTX Group said “U.S. is over reliant on drugs from China, and it’s not a sustainable model.”
The spread of the novel virus throughout American shores in recent weeks has underscored the long held worry regarding the U.S.’s “over-reliance” on Chinese pharmaceutical production. America essentially ceased domestic production of penicillin around 2004.
Over 80 percent of pharmaceuticals sold in the U.S. in addition to crucial medical equipment, including face mask come from China.
Congress has several bipartisan bills, including the “Pharmaceutical Independent Long-Term Readiness Reform Act,” are currently awaiting further action, all with the intention of urging and even forcing pharmaceuticals back into U.S. borders and away from Chinese domination.
President Trump last took more urgent action on the matter, signing an executive order to pave the way for masks and related respiratory needs to be American made amid the time of frantic shortage and crisis. The intention of the order is to close legal loopholes, streamline the tangle of red tape and encourage companies to manufacture products in the U.S., rather than China.
Department of Defense has long raised red flags about China dominance in the U.S. drug supply chain being a national security concern.
Ken Mahoney, New York based Mahoney Asset Management said “it would be a major investment to build more Pharmaceutical production facilities here in the U.S. The advantage would be that we can then be self reliant and the U.S. can’t be ‘blackmailed’ by China.”