China is a cultural region, an ancient civilization, and, depending on perspective, a national or multinational entity extending over a large area in East Asia. Only two decades ago, China was a poor agricultural country but now it becomes the third-largest economy in the world.

1, China’s pharmaceutical market
The has shown impressive growth in recent years, in tandem with the country’s rapid economic expansion. In the past twenty years, China’s pharmaceutical market has an averaging between 18 – 20% growth, significantly higher than US and European growth during that period (7 – 9%). The total pharmaceutical market is expected to grow to $27.7 billion by the year 2005, to become the world’s largest pharmaceutical market by 2020.

2, China’s pharmaceutical industry
China has a large domestic pharmaceutical industry, providing 80% of China’s pharmaceutical consumption. In 1995, approximately 3,000 domestic state pharmaceutical enterprises produced a total output of $12 billion, of which more than $3 billion was exported, according to the State Pharmaceutical Administration of China (SPAC). The Chinese pharmaceutical industry has increased in value with an annual average growth rate of 16.72% over the last few decades.

However, the industry is still small-scale, with a scattered geographical layout, duplicated production processes, and outdated manufacturing technology and management structure. The Chinese pharmaceutical industry also has a lower market concentration and weak international trading competitiveness, coupled with a lack of patented pharmaceuticals developed in-house.

As China joins the World Trade Organization (WTO), it needs to integrate more completely into the global economy. The international competition will place an intense pressure on the Chinese pharmaceutical industry and further open the door to a lucrative market for non-Chinese companies, especially for pharmaceutical producers and manufacturers. Accession to the WTO binds China by fundamental WTO principles, such as improved transparency and the strengthening of commercial legal procedures. China’s WTO commitments include the tightening of rules on intellectual property, tariff concessions, and market access of non-Chinese service suppliers engaging in the distribution of pharmaceuticals. All such moves create additional business opportunities for non-Chinese pharmaceutical companies in China, and in turn, place an intense pressure on the Chinese pharmaceutical industry.

So, over the past few years, Chinese pharmaceutical firms have been merging to improve economies of scale, concentrate resources, and increase competitiveness through vertical integration. Many large, state-owned pharmaceutical companies are also transforming their ownership structures into joint ventures or public companies to become more efficient. According to the SPAC, China aims to become the world’s leading producer of pharmaceuticals and medical devices and instruments in the first half of this century.

3, China’s pharmaceutical foreign trade

In recent years, many Chinese pharmaceutical enterprises take part in the international pharmaceutical market. They not only export patent medicine but also assist their global partners in shortening the cycle and lowering the cost of drug discovery and development by providing cost-effective and efficient outsourcing solutions, for example, pharmaceutical intermediate. Some Chinese pharmaceutical companies even appear in the Nasdaq market successfully, such as WuXi PharmaTech (WX.NYSE) and Simcere Pharmaceutical Group (SCR) etc.

Electronic commerce is introduced to the pharmaceutical enterprises. is one of the most famous B2B website in China. It provides various trade leads including pharmaceutical information among China factory, manufacturers, suppliers, and global buyers.

The pharmaceutical trade shows supply the platform to the leading manufacturers, suppliers and buyers both at home and abroad. Many pharmaceutical companies attend the China International Medical Equipment Fair (CMEF), China International Oral Care Technology & Equipment Exhibition and Shanghai International Medical Equipment and Furnishment Exhibition ?IMEFE? and so on. CMEF is Asia Pacific’s biggest exhibition serving the entire value chain for the medical devices market. China International Oral Care Technology & Equipment Exhibition is organized by the China Oral Care Industry Association, Exhibition Center of China Light Industry. The Show covers oral care products, raw and auxiliary materials, packaging materials, manufacturing and packaging equipment, oral medical equipment and materials.

4, China’s pharmaceutical market trend

First, the price of pharmaceutical products will continue to decrease steadily. In June 2004, the price of 400 antibiotics in 24 categories, including penicillin, was reduced by, on average, 35%. The total value affected by this reduction was US$42 million. The central government has been playing a significant role in pharmaceutical price readjustment. According to industry experts, future price reductions will originate from hospital pharmaceutical retail shops.

Secondly, the rural pharmaceutical market will shift significantly. According to Information Times, 80% of counterfeit products are consumed in rural areas. This provides a huge opportunity for pharmaceutical companies to develop the market in rural areas.

Thirdly, China will become the largest pharmaceutical R&D base in the world. In recent years, more and more western pharmaceutical enterprises, such as GSK, Roche, Novo Nordisk, etc, have come to China and set up R&D centers. Twenty world leading pharmaceutical companies have established joint venture manufactories in China. Some have even set up sole propriety manufactories. Currently, amongst the largest 500 overseas enterprises, 14 of them are pharmaceutical companies.

Due to all things above, that foreign enterprises will begin an OTC price war in future years. Based on expert analysis, foreign enterprises have been closely monitoring the expanding OTC market. With a GDP of more than $2, 108 billion in 2006. Experts forecast that by 2020, China will be the world’s largest economy.

If you happen to be in China or if you are planning a visit to China shortly for China business, you should avail the wonderful opportunities available in import and export and try getting the best of them. The ever intensifying nexus of China business enterprises with the trade partners around the world has resulted in some great opportunities in this country for global sourcing.

Exhibitions and Trade Fairs: A continuous increase has been witnessed in the number of participants coming to enter into China business and to attend the Canton trade fair and other local trade fairs. These exhibitions and fairs offer a simple way to make new contacts and to increase the opportunities in China business.

Meetings and Conventions: The location for China business often makes a difference in the success of any event. China is a great place to organize any event or business meeting at international level for global sourcing. Provisions for high class venues, state of the art technology, best services, the best catering services, good facilities for transportation and fantastic tour programs, are some of the reasons for the popularity of business meetings in China. This is a major reason behind the increase of China business of import and export.

There has been a significant increase in the number of events held at international level in China, due to the increased political and economical influence of Chinese business in the international market.

Trips and Events: The history, diverse culture and beautiful places in China are not the only pleasures one can have during tour for China business. The events and trips undertaken during China business are those value added incentives that make your tour a memorable one. There has been a great change in the infrastructure of China business and the living style of people living in China after the open door policy was introduced here in 1970. More and more companies are heading towards China and all this has given boost up to global sourcing into China business.

Trade Mission Trip: China is the fastest developing country and the growing economy in China has drawn the attraction of global sourcing in China business companies towards it. Numerous companies from all over the world already have their offices in China for increasing import/export. There are great opportunities for expanding China business, both for small as well as large import and export companies. Moreover, the government of China is also trying to help the foreign investors to utilize the opportunities offered by the China business in global sourcing, so that they can get the worth of their invested money.

Due to all things above, a visit to the famous attractions in China makes your trip the most remarkable event of your life.