China–Taiwan Tensions: A Time Bomb for Global API Flows

Taiwan is not only a semiconductor powerhouse—it’s also a critical node in pharmaceutical logistics. Its proximity to key Chinese manufacturing zones, strategic sea lanes, and global air freight networks makes it a geopolitical hotspot with high systemic risk. Recent military drills and diplomatic friction have prompted multinationals to reevaluate exposure to the region. The pharma industry, heavily reliant on Chinese and Taiwanese APIs, faces the dual challenge of supply interruption and compliance with evolving sanctions.

Major distributors are now mapping alternatives across India, Southeast Asia, and even LATAM. Yet, replicating the scale and technical depth of Chinese production is no small feat. The current situation is a warning to pharma executives: single-region dependency is no longer tenable.