Lawmakers Raise Concerns Over China's Communist Party Manipulating US Medical Supply Chain
Lawmakers urge the Department of Veterans Affairs to swiftly reduce reliance on China for medical supplies, citing concerns of potential manipulation by the Communist Party
Two leading House Republicans are urging the Department of Veterans Affairs to accelerate its efforts in reducing its dependence on China for medical supplies, as revealed by CNN. The Covid-19 pandemic uncovered a critical weakness in America's medical supply chains, leading to shortages of masks, respirators, and other essential equipment.
China Select Committee Chairman Mike Gallagher and Veterans Affairs Committee Chairman Mike Bost are cautioning that the VA must take further action to avoid a recurrence of a similar incident in the future. In a letter exclusively obtained by CNN, the lawmakers wrote to VA Secretary Denis McDonough, emphasizing that the COVID-19 pandemic unveiled the jeopardy to national security and public health that arises from an insufficient assurance of adequate medical supplies. Learning from this experience is of utmost importance.
Bost and Gallagher have highlighted that the Chinese Communist Party (CCP) took over the control of medical supply production and distribution in China in early 2020. Consequently, shipments that were supposed to be sent abroad were redirected to cater to China's growing internal demand. This resulted in a global shortage of medical supplies, impacting various healthcare systems in the United States, ranging from the Department of Veteran Affairs to small rural hospitals. The lawmakers have expressed concern that if we do not appropriately address our reliance on Chinese manufacturing and the insufficient domestic production, our public health supply chain will remain vulnerable to manipulation by the CCP, putting American lives at risk during future emergencies.
The focus on the VA is due to its status as America's largest integrated health care system, as noted by Bost and Gallagher. Being the primary purchaser of medical supplies among federal agencies, it holds significant sway. The Department of Veterans Affairs acknowledged receipt of the letter and is currently engaged in the process of addressing the inquiries posed by the lawmakers.
"Whenever possible, VA is dedicated to procuring goods that are manufactured in America," said Terrence Hayes, the VA press secretary, in a statement to CNN. "Through collaborations with other federal entities and industry partners, we are actively identifying U.S.-made products and supporting the revitalization of American manufacturing. This commitment ensures that the majority of VA purchases originate from domestic sources."
In January 2021, the day after assuming office, President Joe Biden issued an executive order directing the VA to join forces with the Defense Department, Department of Homeland Security, and Department of Health and Human Services to develop a national strategy for bolstering the resilience of the pandemic supply chain.
The government agencies released a report in mid-2021 outlining objectives to ensure the robustness of the public health supply chain in the face of pandemics and other biological risks.
Bost and Gallagher expressed their dissatisfaction in their letter, citing the report's lack of specific information regarding the timeline and implementation methods for the new strategy.
The lawmakers expressed concern that, like many other government reports, this report is being overlooked and not leading to any action. They believe it is important to reassess the common belief that relying on just-in-time inventory is enough. Increasing inventory levels may be costlier but it improves the reliability of medical supply chains.
The Republicans acknowledged that the VA made progress under former acting Under Secretary for Health Richard Stone, who resigned in June 2021.
"Further progress needs to be made," stated Bost and Gallagher.
World Trade Organization data reveals that a majority of America's imports for Covid-19 essential goods originated from three main partners: China (30.6%), Mexico (15.3%), and Malaysia (9%).
The GOP letter to McDonough inquires about several questions, to be answered by November 29. These questions include whether the VA has engaged in comprehensive pandemic exercises for supply chain preparedness across the entire government, as well as whether the agency has evaluated its reliance on China for medical supplies.
Congress has made efforts to enhance the resilience of the country's medical supply chain by reducing dependence on countries that are less favorable, such as China.
Democratic Senator Tom Carper and Republican Senator Thom Tillis introduced a legislation in June, which aims to grant the White House the authority to engage in trade negotiations concerning medical goods and services. This bill would specifically allow the President of the United States to form trade agreements or lower tariffs with America's "trusted trade partners."
