China dominates medical supplies, in this outbreak and the next

BEIJING - Alarmed at China's stranglehold over supplies of masks, gowns, test kits and other front-line weapons for battling the coronavirus, countries around the world have set up their own factories to cope with this pandemic and outbreaks of the future.

"The Chinese have been successful weaving global personal protection equipment dominance with supply-chain command and control," said Omar Allam, a former Canadian trade official trying to establish production of in-demand N95 medical respirators in his country. The state's heavy involvement in its economy has led to waste and graft that could slow China's growth. But the policies have often proved effective in building industries that can withstand losses and tough foreign competition. Medical supplies may be similar.

US companies have been reluctant to make big investments in fabric manufacturing because they worry that mask demand will be temporary. But Texas last Thursday that most residents wear masks in public places, part of a broader embrace of face masks in recent days.Ma Zhaoxu, vice minister of foreign affairs, said that from March through May, China exported 70.6 billion masks. The entire world produced about 20 billion all of last year, with China accounting for half.

The ministry's decision was part of the country's US$300 billion "Made in China 2025" industrial policy to replace imports in many key industries, including medical devices. The ministry called for raising China's share of the local market by 30 to 40 percentage points in each category of medical supplies.

At least three other large, populous provinces - Liaoning, Hubei and Shandong - made similar announcements.

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