Global drug giants double down on China amid trend to build self-reliant supply chains

AstraZeneca said it would establish drug manufacturing facilities in Guangzhou and Shanghai as well as a separate innovation centre in Shanghai, joining a group of foreign players building new plants in China amid geopolitical tensions.The moves are part of a US$15 billion commitment the British firm pledged to make in the world’s second-largest drug market through 2030, unveiled during UK Prime Minister Keir Starmer’s visit to Beijing in January.China’s manufacturing capabilities, integrated supply chain and cost advantages were drawing multinationals to produce locally, said Zhang Jialin, head of China healthcare research at Nomura. “Beyond their long-term commitment to the China market, technical know-how and quality advantages are key considerations driving these companies to build here.”On Thursday, AstraZeneca signed a memorandum of understanding with Guangzhou authorities to build a radioconjugate drug manufacturing site, which would produce next-generation cancer drugs for patients in China and the broader Asia-Pacific region, according to a statement on its website.The new facility will be in the Guangzhou Economic and Technological Development Zone, a state-designated industrial district spanning 17.67 sq km in Huangpu district, east of the city centre. It will specialise in producing an actinium-225-based radioconjugate for prostate cancer treatment.A view of the AstraZeneca building in Macclesfield, central England on May 11, 2021. Photo: AFPSeparately, AstraZeneca said it planned to build a cell therapy production base in Shanghai’s Lingang Special Area, a government-designated free-trade zone designed to attract advanced manufacturing and hi-tech industries, as well as an innovation centre at Zhangjiang Hi-Tech Park, a life sciences and tech hub in the Pudong district that is home to hundreds of pharmaceutical and biotech companies.