What impact will Trump's' tariff stick 'have on Chinese biopharmaceuticals?

time2025/02/07

In the context of global economic integration, the changes in Sino US trade relations have had a profound impact on the biopharmaceutical industry.

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Currently, Trump is once again wielding the stick of tariffs, bringing unprecedented challenges to the field of biomedicine.



Rain is Coming - The Impact of Tariff Wars on the Biomedical Industry Chain

The tariff war first affected the import costs of raw materials and equipment for biopharmaceutical companies. Many key raw materials and high-end equipment rely on imports from the United States, and the increase in tariffs has led to a significant rise in procurement costs for businesses.

For example, the procurement cost of special enzymes and reagents commonly used in biopharmaceuticals has increased by 25% -50%, severely compressing the profit margin of enterprises. 

The field of medical device manufacturing has also been affected, with soaring import prices of core components, weakening the competitiveness of domestic medical devices in the international market.

At the same time, the tariff war has also led to obstacles in market demand and sales. The increased cost of American products entering the Chinese market has led to price increases and reduced market demand.

Chinese biopharmaceutical export companies are also facing similar problems. The price advantage in the US market has weakened, sales channels have been blocked, and companies have had to seek other overseas markets or increase investment in the domestic market.



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Water comes, soil hides - the response strategy of Chinese biopharmaceutical companies

Faced with the challenges brought by the tariff war, biopharmaceutical companies have adopted a series of response strategies. Firstly, enterprises should adjust their industrial layout and optimize their supply chain system.

By increasing domestic R&D and production investment, improving the localization substitution ratio of key raw materials and components, and reducing dependence on imports. At the same time, enterprises actively expand their global supply chains, seek alternative suppliers, and diversify procurement risks.

In addition, enterprises integrate industrial chain resources through mergers and acquisitions and cooperation, and strengthen the coordinated development of upstream and downstream. 

Some large enterprises achieve vertical integration of the industrial chain and reduce production costs by acquiring raw material production enterprises.

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Embracing the dual circulation of domestic and international markets - the future development trend of biopharmaceuticals

Although the tariff war has brought many challenges, it has also provided opportunities for the structural adjustment and innovative development of the biopharmaceutical industry. 

The domestic market has enormous potential, and enterprises attach greater importance to the development of the domestic market, increasing efforts in product promotion and market cultivation.

At the same time, the importance of regional economic cooperation in the field of biomedicine has become increasingly prominent. The cooperation between China and countries along the "the Belt and Road" has been deepening, expanding the overseas market space.

The government has also introduced a series of supportive policies, including R&D investment subsidies, tax incentives, and industrial park construction, to encourage innovative development of enterprises and promote industrial upgrading.

In the future, policy support will be further increased, the industrial ecology will continue to improve, the mechanism for collaborative innovation between industry, academia, research and application will be more sound, and financial capital support for the biopharmaceutical industry will be enhanced, forming a good industrial development ecology.

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