Rubio wants more domestic drug-making to fight coronavirus, lessen reliance on China

A year ago, Florida Republican Sen. Marco Rubio warned that U.S. dependence on Chinese supply chains could have significant consequences.

The coronavirus pandemic got the White House and fellow lawmakers to pay attention.

During a closed-door lunch on Tuesday, Rubio and President Donald Trump agreed that the U.S. needs to encourage more domestic drug manufacturing and lessen its dependence on China to produce medicine, especially generic drugs. Novel coronavirus was first detected in China.

On Wednesday, the White House said it was considering an executive order that mirrored many of Rubio’s policy ideas released in February. The White House executive order would require federal agencies to purchase American-made pharmaceuticals and medical equipment and to prioritize pharmaceuticals, face masks, ventilators and other medical products that are made in the U.S. over foreign-made products.

The White House wants to streamline regulations to make it easier to produce drugs and medical equipment in the United States to spur domestic production.

“The coronavirus outbreak has been a wake-up call that we must combat America’s supply chain vulnerabilities and dependence on China in critical sectors of our economy,” Rubio said in a statement. “The Trump administration’s forthcoming executive order is a very strong first step toward increasing domestic production by enforcing Buy American requirements for pharmaceuticals and medical supplies, as well as fast-tracking FDA approval of critical products impacted by the coronavirus outbreak’s strain on the supply chain.”

Rubio, who chairs the Senate Small Business Committee, is also chairing a hearing on Thursday titled “The Coronavirus and America’s Small Business Supply Chain.” Experts at the hearing will testify on ways the U.S. can expand its domestic manufacturing capabilities to lessen reliance on China, which is the largest producer of generic drugs.

Dr. Gerard Anderson, a professor of health policy and international health at Johns Hopkins University, said the U.S. frequently relies on Chinese companies to manufacture generic drugs because they can produce drugs cheaper than many U.S. manufacturers.

“Our heavy dependence on China for our generic drugs that compete on price is a huge issue and they could turn off the spigot at any time,” said Anderson, who will testify at Thursday’s hearing. “We would be left high and dry not being able to create our own drugs.”

Anderson said U.S. companies that sell generic drugs typically hire foreign firms to produce the drugs, and Chinese companies are often able to produce the drugs for the cheapest price possible. He said U.S. consumers and the U.S. government must be willing to prioritize U.S. national security over the cheapest price possible if the government is serious about reducing its dependence on Chinese-made drugs.

“Right now for branded drugs we are generally okay, but for generic drugs because they’re based on price competition we’re very dependent on international sources for our drugs,” Anderson said “Unless we’re willing to pay more, the manufacturers will go overseas where the costs are lower.”

Anderson also said the drug supply chain problem isn’t solely about China. He noted that Hurricane Maria caused a disruption in drug production in Puerto Rico when international firms were forced to halt production on the island’s 50 pharmaceutical plants and that many drugs around the world are manufactured in one place, making certain drugs vulnerable to events like coronavirus that force a factory to close.

Rubio is also proposing an increase to the Small Business Administration’s 7(a) loan program, a move he says will provide low-cost capital to businesses that are trying to expand their domestic supply chains and lessen their dependence on China.

Rubio is attempting to get the loan expansion into any coronavirus-related legislation that Congress votes on before leaving for a one-week recess on Thursday.

Anderson said there’s another thing Congress can do to fight coronavirus: expand paid sick leave to every working American.

Rubio and other congressional Republicans are opposed to the idea, arguing that business owners should make the decision themselves.

“Sometimes things don’t require government action. They require people to be decent human beings and do the right thing,” Rubio said.

Washington Democratic Sen. Patty Murray tried to pass a paid sick leave bill Wednesday through a fast-track measure that fails if one other senator objects, but Tennessee Republican Sen. Lamar Alexander blocked the bill.

“Our primary goal right now, for people in my home state and across the country, needs to be slowing the spread of the virus in areas where there are outbreaks, so areas where it hasn’t hit so hard yet have time to prepare,” Murray said on the Senate floor. “One of the best ways we can do this is by allowing workers who feel sick — or who need to stay home with a child whose school is closed — to do so without losing a paycheck or a job.”

This story was originally published March 11, 2020 at 4:16 PM.