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China Studies: China’s pharmaceutical drug industry

China is the world’s largest pharmaceutical market and over half of the world’s total number of prescribed medicines are manufactured in China. In the next few years, the Chinese government will be promoting the development of the pharmaceutical industry in order to tap into the country’s huge market. Yet, the potential pitfalls are also evident. In this month’s China Studies, we take a look at China’s growing pharmaceutical industry and its challenges.

The strength of China’s pharmaceutical industry lies in its technology and expertise. The country is home to well-regarded research institutes, such as Tsinghua University, which has been at the forefront of drug research and development for decades. To raise awareness of and increase participation in science and technology, the Chinese government is introducing compulsory education in scientific research from the primary school level.

As Chinese pharmaceutical industry grows so will China’s scientific research. The percentage of doctors with bachelor degrees and master degrees has doubled over the past decade. To accommodate an increase in population, the state is facilitating more healthcare facilities and will continue to bring more affordable medicines to the public.

But China will face challenges as the pharmaceutical industry expands. Changing consumer habits and increasing competition are two major problems the country will have to tackle. Rising prices will be a major hurdle to become a major pharmaceutical exporter, but this is part of a natural development process. Prices increase with production cost and a rise in demand.

Chinese companies are shifting focus to other, high growth markets. As the Chinese market is expanding, China’s technical advantages are also under threat. Other countries are paying more attention to the industry and are trying to emulate the success of their medicines.

We also look into how Chinese pharmaceutical players are adapting to the global market. In the past, Chinese manufacturers focused on their home market, but the industry is making a transition from being purely domestic to international. Chinese companies are developing a global strategy while setting up an international office.King’s Ride

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