Chinese Medicine Industry strengths_ weaknesses and threats

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Chinese Medicine Industry strengths_ weaknesses and threats Powered By Docstoc
					Chinese Medicine Industry strengths, weaknesses and threats
???????Chinese Medicine Industry strengths, weaknesses and threats




????????In China, a real problem is that joining the WTO, because
chemicals developed to further strengthen intellectual property
protection, imitation will be more difficult, and in the purchase of
imported drugs and the price of foreign pharmaceutical patent cases
are very expensive to play Chinese traditional medicine the unique
advantages of the pharmaceutical industry to become the inevitable
choice of development strategy.

However, the shoulder that responsibility of Chinese Traditional
Medicine Industry, the equipment and process are quite backward, a
serious shortage of international competitiveness, therefore, the
correct analysis of the Chinese medicine industry in international
competition in the comparative strengths, weaknesses and threats to
traditional Chinese medicine industry In a competitive advantage in
international competition to have important significance.

First, the comparative advantage of Chinese Traditional Medicine
Industry

Long cultural superiority of Chinese medicine theory and Chinese
herbal medicine resources and rich

Chinese medicine to the Chinese nation's fine traditional culture of
applications in medicine, clinical experience, sum up to form a
complete theoretical system of Chinese medicine to save as many as 30
million of the recipe, recipes. Traditional Chinese Medicine theory to
adapt to the rise of the world began to demand individuality and
diversity, showing a great vitality. Long Chinese medicine theory and
cultural superiority to the development of traditional Chinese
medicine industry and the world has laid a solid foundation Jinchu
At the same time, our wide range of natural conditions, gave birth to
the rich resources of Chinese herbal medicines, so our training,
development of Chinese medicine industry has unique advantages in
resources. According to the National Census and Statistics traditional
Chinese medicine resources, China has recorded as many as 12,807 kinds
of medicinal resources. By source, 11,146 kinds of medicinal plants,
1,581 kinds of medicinal animals, 80 kinds of medicinal minerals, by
the use of points, more than 1200 kinds of Chinese herbal medicines
business, more than 4000 kinds of folk medicine, folk medicine for
more than 7000 kinds. 600 commonly used herbs in planting more than
200 kinds of medicinal herbs, cultivated area of 400,000 hectares,
annual production of 300,000 tons, accounting for 30% of commonly used
medicinal species, cultivation accounting for the acquisition of the
total annual output of nearly 50%; wild herbs buy varieties of 400
species, the acquisition was 40 million tons of varieties of herbs
commonly used about 70% of the acquisition purchase accounting for 50%
-60% of the total. National business more than 1200 kinds of medicinal
species, Chinese herbal medicine around the acquisition value of 16
billion yuan.

A large number of human resources

China has a knowledge of modern medical science and technology,
traditional Chinese medicine research team. Where (the country)
Chinese Medicine Hospital 2552, the 30 institutions of Chinese
medicine, the independent medical research institutions 77, and
hundreds of Chinese new product development organization.

As of 1998, China has a total of 514,380 health professionals in
medicine, including Chinese classes for the 350 743 people, Chinese
class is 163 637 people, the technical personnel foundation for the
development of Chinese medicine in China, while there are a thousand a
year were higher in medical professionals to the social and scientific
research institutions step. In recent years also welcomed, encouraged
to apply for Non-Traditional Chinese Medicine of undergraduate
institutions, graduate students, aims to train a number of other
institutions have learned to use the computer, biological, chemical
and other knowledge to the development of Chinese medicine compound
talents for Chinese medicine modern, high technology into the new
force.

Strong market demand

Back to nature in recent years, the rise of the tide of the world, led
the Chinese market demand continues to grow. Relevant statistics show
that sales from the international herbal market of 12.4 billion U.S.
dollars in 1994 to 16 billion U.S. dollars in 2000, the average annual
growth of above 8%. Sales of herbal medicines is now the highest in
Europe, accounting for 35% global market share. U.S. market accounts
for 20%, although lower than in Europe, but herbal medicine market in
the past 10 years, the highest growth rate of the country. As it is
expected, natural medicine in the world pharmaceutical market capacity
of up to 40 billion U.S. dollars.

In China, the demand of Chinese medicine is also growing. Chinese
patent medicine published in the national directory of
non-prescription drugs account for more than 80%, but mainly for the
purchase of proprietary Chinese medicine pharmacy consumers have less
than 40% of consumers, while the parties concerned on the market,
according to the survey, the current market with herbal cosmetics
Traditional Chinese medicine, Chinese medicine treatment of the demand
increases, traditional Chinese medicine in the rural market prospects,
which makes the existence of a potential of China's OTC market
proprietary

A good basis for new drug development

Modern study of traditional Chinese medicine has made remarkable
progress: the basic theory of traditional Chinese medicine has been a
systematic and comprehensive finishing; identification of areas in
addition to general sources of medicine, character identification of
foreign, are still widely used microscopic, chemical and other means;
by Chinese dish Technology and principles of modern research,
traditional Chinese medicine concocted by a larger study the
development of Chinese medicine concocted for many has been improved
and standardized, and uses a lot of advanced equipment and technology
to improve the quality slices; on the chemical composition of
traditional Chinese medicine extensive research, most commonly used
traditional Chinese medicine identified the main active ingredients,
some identify the chemical structure; antibacterial, antiviral,
antitumor and other aspects of a large number of drug screening, drug
in polysaccharides, tannins, amino acids, peptides, have been found
There are many biological activities, in clarifying the effectiveness
of Chinese medicine has played an important role. In order to develop
unified standards for medicines, Ministry of Health established the
China Pharmacopoeia Committee, published in 1995 edition
Pharmacopoeia. These results for the development of new drugs of TCM
in China and have a complete IPR laid a good foundation, and has a
complete intellectual property rights of Chinese medicine and the
pharmaceutical industry in China to participate in international
competition, the biggest advantage.

Strong policy support

My Government has always attached great importance to the
pharmaceutical industry, given the strong policy support. In 1997, the
CPC Central Committee and State Council required all aspects of the
development of traditional Chinese medicine industry should actively
promote the modernization of traditional Chinese medicine production.
In 1999, the National Science and Technology and other ministries
through the long-term research, the establishment of a "modern
medicine" and "Chinese medicine more broadly to the
world" strategic objective, select the "Chinese technology
industry," as an entry point to promote the comprehensive
development of traditional Chinese medicine industry. In April 2000
set up a traditional Chinese medicine in Shanghai Innovation Center,
and to develop Hong Kong as an international center for Chinese
medicine, Chinese medicine to Shanghai and Hong Kong through faster
and better to go abroad.

Recently, the State Planning Commission and the State Administration
of Traditional Chinese Medicines in 2002 made a special implementation
of industrial elements. Special to train a large variety of Chinese
Medicine Industry, big business, big market for the purpose, goals, Í»³ö
focused implementation of demonstration projects of modern traditional
Chinese medicine industry, the modern pharmaceutical industry,
advanced technology and equipment, upgrading of Chinese Medicine
Industry Neizaijingzheng Li .

The cheering, the November 1, 2002, the State Council transmitted the
Ministry of Science, the State Planning Commission, the State Economic
and Trade Commission, Ministry of Health, the State Food and Drug
Administration, State Intellectual Property Office, the State Medical
Board, Chinese Academy of Sciences 8 departments jointly formulated
the "Outline of Chinese modernization," the
"Outline" made from 2002 to 2010 the guiding ideology of
China's modernization of Chinese medicine, basic principles and
strategic objectives, key tasks and key measures that will promote the
pace of modernization of traditional Chinese medicine production a
significant role.

2, disadvantages of traditional Chinese medicine industry

Low level of international operations

TCM is not proper international status, Chinese medicine in many
countries still mainly non-governmental voluntary application, Chinese
medicine has not fully legalized in most countries and areas covered
by medical insurance. So far, the overall Chinese medicine only South
Korea, Southeast Asia, individual countries recognized. In Europe and
the United States market, China's TCM health food products can only be
entered, rather than access to drugs, so the market is limited and the
price is very low sales.
With the implementation of the modernization of TCM in China, some
Chinese manufacturers product positioning to compete in international
markets, increased research and development efforts on the
international market. However, industry-wide situation, the
international investment and development efforts is not enough.
State-owned foreign trade enterprises has been gradually declining,
manufacturers are not familiar with the international market and other
factors have restricted the development efforts of the international
market.

Resources development and utilization of traditional Chinese medicine
production and low efficiency, product quality could not meet demand

Because of the abundant resources of Chinese herbal medicines have not
been well integrated development and use of large consumption of
natural resources, makes some valuable resources of Chinese herbal
medicines is almost depleted, the bulk of the cultivation techniques
to promote Chinese herbal medicine is not enough, Chinese herbal
medicine production extensive management, yield low, poor quality of
the phenomenon more common; Chinese herbal pest control and pesticide
residues pollution problem more serious. Processing in Chinese Herbal
Medicine, Chinese herbal medicines as the quality of instability,
confusion species, low level of factors of production, resulting in
unstable product quality, processing issues such norms are not
uniform, making it difficult to meet the needs of foreign customers,
greatly weakened the Chinese medicine market competitiveness.

Enterprise-scale industrial concentration lower than filial piety,
technical level is not high

According to the China Administration of Traditional Chinese medicine
production enterprises on the 1059 Statistical analysis, which
accounted for 1 018 small and medium enterprises, accounting for
96.13%. 2001 Chinese herbal medicines and proprietary Chinese
medicines industry sales top 10 enterprises in concentration of only
25%. Chinese medicine preparation equipment industry as a whole is
only equal to 70 years the international level, few specifications,
systematic, standardized, and supporting poor, low level of
automation, quality inspection equipment, delay, lack of modern
enterprise management system, and basically do not have the technology
development of innovation.

Production and export structure defects

Chinese medicine industry in the production of defective products,
outstanding performance in the competitive products of aging,
low-technology, single-species production Guimo school principal
products are basically three types of medicine, dosage form, backward
technology, low level of quality standards, a high-quality second
class drug rare, new dosage forms such as injections, pills, aerosols
and other developed slowly.

In the export structure, the international market every year up to 10
billion U.S. dollars sales of proprietary Chinese medicines, but still
an annual increase rate of more than 10%, while the Chinese
traditional medicine, in which only less than 4% share, and the main
varieties are low processing, low value-added Chinese herbal medicine,
Chinese herbal medicine exports in 1999, these varieties accounted for
64.7%, while the proprietary Chinese medicines and plant extracts
falling instead of rising exports, the proportion of 15.4% and 20.2%.

Third, the threat of Chinese Medicine Industry

Japan and South Korea in the world drug market has formed a number of
natural advantages

Under the prospects of attracting industrial development of Chinese
medicine, countries, especially Southeast Asia, Korea, Japan and other
competing uses modern technology of Chinese medicine, Chinese herbal
medicine to seize the international market often in Japan,
"Chinese herbs" in GDP has more than 100 billion yen, of
which drug preparations such as Pills, Tsumura Chailing soup
successfully opened and occupied the international market, while Japan
also Dajian herbal base and developed a large Chinese medicine
development. At present the Korean market's more than 100 kinds of
herbs commonly used, most of the country self-sufficient already, and
many of the export supply. Korean ginseng is only an annual foreign
exchange earnings reached 175 million U.S. dollars, has been higher
than the participation of 10 times our garden.

Japan, Korea and other countries of the proprietary Chinese medicines
on the one hand with the reduction in tariffs to increase our
proprietary Chinese medicines, Chinese patent medicine market, the
impact on China, on the other hand will compete with the international
herbal medicine market in China often they sound market operation
mechanism, marketing strategy , management experience and advanced
technology will bring our country a great threat to Chinese
enterprises.

Paying attention in many countries and regions, the development of
natural medicine, herbal companies in the world are a large number

Currently, the development of natural medicine has increasingly been
the world attention. 124 countries around the world and regions have
established various types of Chinese medicine institutions in Chinese
medicine in Southeast Asia, Japan, Korea and other countries has been
widely used, some European and American countries are also gradually
improve the restrictions on Chinese medicine, some countries have of
Chinese medicine into the health insurance area, and to be recognized
in law.

At the same time in the world herbal companies in large numbers, the
United States has built dozens of large-scale herbal manufacturers,
such as the existing international resources of these enterprises,
production and development capabilities, there are a large sales
network chains herbal group. Also in Western Europe, Japan, Korea and
other regions and countries, with abundant capital, and development
capability and advanced production technology and equipment production
technology, basic research and quality control are superior to China,
and to the international herbal medicine market is very competitive
threat to the very traditional Chinese medicine industry.

Currently, there are more than 170 companies, more than 40 research
groups dedicated to natural medicine research and development, annual
cost of 110 million.

Large number of foreign enterprises to enter China pharmaceutical
market, some to enter the domestic Chinese market

With the progressive liberalization of China's medical market, the
influx of foreign pharmaceutical companies, which especially is now
more than 10 countries and regions, more than 40 kinds of natural
medicine registration in China, annual imports of "foreign
Chinese" on more than one 100 million U.S. dollars, "foreign
Chinese" Chinese competition in the market with the severity of
inconsiderable. Particular attention is to enter the Chinese market
and overseas pharmaceutical companies, because of its abundant
capital, advanced technologies and management experience, domestic
enterprises will be tremendous pressure.

Technical barriers to trade

As the Chinese herbal medicines in the international arena has not yet
formed a unified testing standards, our history of traditional
production, processing and marketing methods become increasingly
unsuited to the different needs of countries in the world. Domestic
and international practice medicine the lack of quality standards,
which is traditional Chinese medicine to enter the international
market, the greatest obstacle. Mostly proprietary compound, stability
is difficult to control; have excessive heavy metals, pesticide
residues and other issues, far from Europe and the United States
relating to drugs and even the basic requirements of food. These have
become national Chinese medicine exports to China set up technical
barriers to trade and hinder China's medicine industry in
international competition reasons.

				
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