Study On The Development Strategy Of Traditional Chinese Medicine Industry

ObjectiveBased on the theoretical analysis and the research of the departments of medicine and health, Chinese medicine industry is analyzed with the SCP theory. Through the comparison with other countries'Chinese medicine industry development situation and policy implementation performance, our country'Chinese medicine industry policy is analyzed. Some policies recommendations which will improve the competitiveness of Chinese medicine industry are proposed.MethodsBased on the understanding of the current quo of China's medicine industry and by the integrated use of industrial organization theory, industrial policy theory, health economics, pharmaceutical economics, game theory and other disciplines of theoretical knowledge, policies on Chinese medicine of our country are analyzed and some recommendations which meet the characteristics of Chinese traditional medicine and industry development are proposed. These policies will promote industrial development from the institutional arrangements.Results1. The innovation capability of Chinese medicine industry as a whole is poor and there is a large gap with other countries.Chinese annual per capita drug use is only one-tenth of the developed countries, and about 95% of medical products produced by our own pharmaceutical industry are the imitations of foreign species. Chinese medicine has spread to more than 130 countries and regions, however, even though China has about 4,000 species in the pharmaceutical formulations, but the share in the international market is only 3-5%, there is no traditional Chinese medicine products that is sold in the international mainstream drug market; Japan has only 210 Japanese Kampo formulations and 75% of its raw materials are imported from China, but its international market share has reached 80%. Chinese medicine industry has poor basis, low level of modernization, Chinese herbal medicine inconsistent quality, technology and the backwardness of preparation, imperfect quality control system, seriously hampered the development of Chinese medicine. Traditional Chinese medicine enterprises are with low standardization and small scale so that they are lack of international competitiveness. Chinese medicine enterprises lack of R & D investment, technical and technological capacity, and are unable to meet the needs of the international market.2. In China Chinese medicine exports are of low technology content.Customs statistics show that China exported to natural herbal medicine raw materials for the absolutely dominant, the proportion of 90% or more, a smaller proportion of natural herbal products, and exports declined. At present, Chinese medicine products, trademarks, trade names were registered by foreign companies in serious condition; some countries set barriers to detection of harmful residues restrict the export of traditional Chinese medicine.Our exports of Chinese medicine are in low percentage of high-end. Main parts of them are with low price, high resource consumption and low technology content. Customs statistics show that most of the exporting Chinese traditional medicine is natural herbal medicine raw materials. At present, Chinese medicine products, trademarks, and trade names were registered by foreign companies. It's serious. Some countries set technical barriers in detection of harmful residues to restrict the export of traditional Chinese medicine.3. A comprehensive scientific and effective system of supervision is in lacking.Basic research on traditional Chinese medicine in China is very weak. And until now China has also failed to establish a quality standard system that meets the characteristics of Chinese medicine. Many active ingredients of Chinese medicine are still unclear. There is no comprehensive traditional Chinese medicine quality supervision and evaluation system, and the supervision and evaluation lack of transparency and effectiveness.4. Non-uniform industry standards undermine the competitiveness.Non-uniform industry standards make it impossible to start making standardization. These technical barriers and other reasons result in traditional Chinese medicine in the foreign market only in the form of food supplements. These supplements can not give the drugs effectiveness, and be advertised and sold in pharmacies. Insurance companies don't compensate the expenses for medicine. These have seriously restricted the market share of Chinese medicine in developed countries.Conclusions1. Strengthen government's leading effect.Promoting the development of traditional Chinese medicine industry, the role of government should not be underestimated. Relevant government departments should combine the goals of "the Twelfth Five-Year plan" with the goals of "medical and health system reform", and properly develop the overall strategy for the development of China's medicine industry. Government should lead the Chinese medicine industry marketing alliance, encourage mergers and acquisitions, develop and train large-scale modern enterprise groups to participate in international competition.2. Guarantee the establishment of medical technology innovation system.Multi-channel and diversified investment system is established. Government makes a variety of financial and tax incentive policies to encourage enterprises to investment in innovative drugs. Further develop and utilize human resources. Improving the Chinese legal system of intellectual property rights, enterprises compete under the premise of market norms (GSP).3. Promote to establish international standards for Chinese medicine with Chinese medicine characteristics.Develop a Chinese own quality standards and norms which are internationally accepted and recognized. Strictly control the quality of Chinese Herbal Medicine and Chinese medicine by the integrated use of traditional and modern techniques. And use internationally accepted standards of Chinese medicine and Chinese medicine products for safety assessment to make the potency and safety of traditional Chinese medicine understood and accepted by the world. On the basis of the establishment of international standardization of Chinese medicine, assist other countries'related legislations to make Chinese medicine gradually integrate into the national health care system.4. Develop the Chinese medicine products that meet international demands.According to the epidemic character, legal and regulatory environment, history and culture drug types in different countries and regions, make full use of traditional Chinese medicine, by the via of modern technology, to carry out a variety of modes in new drugs R&D, re-evaluation and secondary development of Chinese medicine products. Support Chinese enterprises to carry international demonstration projects of Chinese medicine with its own brand and intellectual property rights, and international collaboration in process improvement, equipment upgrades, quality control research, intellectual property protection, IND application for clinical testing, international financing.5. Establish a production system suitable for traditional Chinese medicine.With the national value and support, Chinese pharmaceutical engineering in the country has formed a broad network of technical cooperation, and established engineering centers, a base and related institutions for medicine in the eastern, southern, northern and central Chinese, to promote the modernization of Chinese medicine industry. We should strengthen the construction of Chinese pharmaceutical Engineering Center, and promote the development of new technology, new equipment, new technologies, new materials, and new forms in Chinese medicine. We should promote the implementation of GMP and other related regulations.6. Strengthen the research in the intellectual properties of Chinese medicine and International technical barriers.Strengthen the research in basic phannacology and processing methods to ensure continuous material support and personnel guarantee. Under the premise of regulating the harvesting, processing methods, accelerate the establishment of quality standards associated with the prepared slices of Chinese crude drugs. Especially for the morphology of the prepared slices of Chinese crude drugs which has changed, destructed or partially destructed, we should strengthen the application of physical and chemical methods of identification, and develop highly specific qualitative or quantitative indicators. Drawing on the researching experience in the quality standards of homologous medicine, establish the quality evaluation system and standards of the prepared slices of Chinese crude drugs. Strengthen the awareness of the protection of intellectual property rights, the research in intellectual property rights suitable for Chinese medicine, and technical barriers of medicine and traditional medicine in other countries. Under WTO rules, establish Chinese medical technical trading rules, and in promoting the internationalization process of Chinese medicine form a relatively complete intellectual property rights protection system, in order to facilitate participation in the international market competition.7. Protect sustainable utilization of Chinese medicine resources.Research on the sustainable use and development of Chinese traditional medicines; establish a worldwide dynamic monitoring and early warning system about pharmaceutical medicine and other natural resources; use established channels of government and private cooperation to carry out the introduction and development of the world's major resources; promote a reasonable and sustainable application and development of natural medicine resources in the world. While promoting the internationalization of Chinese medicine, we should maintain the living environment of human.8. Promote the establishment of an international certification system of Chinese medicine. On the basis of the study and improvement of standards on traditional Chinese medicine, combining with the regulatory features of the traditional medicine in other countries, coordinate associations of traditional medicine in different countries, unite Chinese medicine physicians in East and West, develop and promote international standards to promote the local government to recognize through professional associations' recognition, promote the establishment of international certification system of Chinese medicine including medical treatment, education, research and development, production, registration, market access and sales standard and establish the certification service providers in related countries and religions.9. through technical assistance, etc, promotes Chinese Medicine to enter into developing country markets.By existing good reputation of Chinese medicine and through the prevention of AIDS, dengue fever, malaria and other major communicable and chronic diseases which endanger people's health in developing countries, select good Chinese medicine products and enter into its medical system with economic and technical aid forms. By the important role of Chinese medicine in helping improving health level in developing countries, exploit a big market for Chinese medicine.Innovation1. The theory innovation:will the SCP analysis model combined with industry international competitiveness, enrich the theory basis of this study.2. Method innovation:the application of quantitative analysis to examine industrial policy of industrial development impact.