Beijing: Chinese pharmaceutical research and development companies are increasingly turning to domestic reagent suppliers in a bid to cut costs and reduce delivery delays, as ongoing trade tensions with the United States drive up the price of imported laboratory materials.

The shift gained momentum after China raised tariffs on U.S.-made reagents to 125% in April 2025, making imported supplies significantly more expensive. Industry analysts say the high costs, combined with longer delivery times, have prompted companies to replace foreign products with locally manufactured alternatives.

The domestic reagent market, valued at around \$5.76 billion, is experiencing rapid growth. Leading suppliers such as Shanghai Titan Scientific and Nanjing Vazyme Biotech have seen rising revenues and stock prices as demand surges. Vazyme reported that over 90% of its clients are now exploring options to substitute imported materials with domestic products.

Pharmaceutical R\&D firm ChemPartner is among those that have significantly reduced their reliance on imports. Executives say local sourcing not only cuts expenses but also ensures faster delivery, which is vital for time-sensitive drug research projects.

In response to the changing market, global reagent producers including Merck and Roche are expanding manufacturing operations within China to retain their customer base. However, experts note that these companies may face hurdles, such as navigating China’s regulatory framework and limitations related to proprietary technologies.

Analysts predict China’s reagent market will continue growing at an annual rate exceeding 10%, fueled by the broader expansion of the country’s biotechnology sector. The trend reflects a broader strategic shift in China’s pharmaceutical supply chain, aimed at achieving greater self-reliance and resilience against geopolitical risks.

The industry will be closely watching developments in U.S.–China trade relations, as any future changes in tariffs or policy could influence sourcing strategies and reshape the competitive landscape.