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According to new IHS Markit data, the United States' shortage of
medical supplies is being exacerbated by trade disruptions from the
COVID-19 epidemic. On a volume basis China accounted for over
one-third (34%) of U.S. imports of critical medical supplies in
2019. The medical supply category includes surgical and medical
gloves, protective gear and masks, medical and surgical instruments
and ventilators.
There is a major risk that the disruptions of the global medical
supply chain will hinder the ability to respond effectively to the
COVID-19 pandemic, at a time when both the U.S. and global
healthcare systems are racing to ensure the capacity needed to
combat the virus.
According to the latest annual trade data:
With $14 billion China is the largest global exporter of
medical supplies;
U.S. annual imports of medical supplies from China stood at
$1.1 bn entering 2020, 18% of all medical supplies imports,
equating to around 4.8% of the total U.S. medical supply
market;
China is only slightly behind medical supply imports from
Mexico which stood at $1.3 billion in 2019;
Germany is in third place with around $830 million worth of
exports to the U.S.
Lack of access to foreign supplies is hindering the U.S.
healthcare system's response as demand surges in the face of the
COVID-19 pandemic.
So far Mexico has taken few government measures to prevent the
spread and appears unprepared compared to other countries. If the
epidemic does take hold, it will place further strain on the
production and supply for medical goods imported from the United
States' southern neighbor.
At the same time, many countries are shutting down their borders
on exports of medical supplies and pharmaceutical products to
concentrate on the surge in domestic demand as COVID-19 works its
way around the world.
The disruption of global trade in medical supplies will be a
setback for the global collaboration necessary to deal with a
deadly global epidemic.
There's going to be a shortfall in medical supplies, despite the
effort by the U.S. and other countries to curtail the impact with a
major ramp up in domestic production. Because of the return of
Chinese industrial production, and the conversion of many companies
away from their traditional businesses to the production of medical
supplies, China is becoming the go-to source for other countries in
desperate need of supplies.
