Germany's drug crisis deepens as reliance on China's medicine supply soars
Germany's reliance on foreign supply chains for essential medicines has grown sharply since the COVID-19 pandemic. Two-thirds of generic drug ingredients now come from Asia—mostly China—up from just one-third in 2000. This shift has left Europe vulnerable, sparking fierce debate among industry leaders, insurers, and policymakers about how to secure future supplies.
At the Handelsblatt annual conference, representatives clashed over solutions, from stockpiling to reshaping trade deals. Some warned of urgent risks, while others dismissed concerns as overblown.
The numbers reveal a stark change in Germany's drug supply. In 2000, two-thirds of generic active ingredients came from Europe. Today, China dominates production for critical medicines: 83% of Metformin, 71% of Amoxicillin, 94% of Cefpodoxim, and over 80% of Metamizol. During the pandemic, these dependencies led to shortages, exposing weaknesses in the system.
Key suppliers now include China (the largest), India (reliant on Chinese raw materials), the USA (14.4% of Germany's pharma chain), and the Netherlands. Since 2020, EU efforts like the Critical Medicines Act have tried to reduce reliance, but progress remains slow. Political calls to bring production back to Europe have yet to overcome deep-rooted dependencies.
At the conference, divisions were clear. Thomas Weigold, head of Sandoz/Hexal in Germany, argued that dialogue alone would not fix the problem. He called the proposed free trade deal with India 'absurd,' claiming it would weaken Europe's resilience. Dr. Kai Joachimsen, CEO of the Federal Association of the Pharmaceutical Industry (BPI), stressed that health policy, industrial policy, and security policy were now intertwined. He warned that Europe's vulnerabilities were being underestimated, urging Germany to secure autonomy beyond short-term stockpiles.
Kerem Inanc, CEO of Alliance Healthcare Deutschland, criticised the assumption that logistics would always hold up. He dismissed the six-month reserve as inadequate and demanded realistic crisis scenarios. Tim Steimle of Techniker Krankenkasse (TK), Germany's largest public health insurer, countered that the six-month stockpile target had already been met. He also defended discount contracts, now functioning as supply agreements—though he admitted pediatric medicines remained an exception.
The debate highlighted a deeper split. Industry leaders pushed for investment to cut dependence on third countries, while insurers downplayed the risks. Some saw trade deals as part of the solution; others viewed them as a threat to self-sufficiency.
The conference ended without consensus, but the challenges remain. Germany's drug supply chain still leans heavily on China and India, despite years of warnings. Policymakers now face pressure to balance trade, investment, and security—before the next crisis exposes the system again.
For now, the six-month stockpile offers a temporary buffer. Yet without broader changes, Europe's ability to produce its own medicines stays in question.
