China's pharmaceutical market is characterized by rapid change and extreme regional diversity between coastal and land areas, and between urban and rural residents. Other factors that have brought about the boom of the pharmaceutical market have been demographic shifts, cultural changes in attitude, and government policy changes.
With the majority of Chinese citizens now having more disposable income, a better education, and a greater awareness of the importance of good medical care, demand for pharmaceutical products from this segment of the population, which offers a huge opportunity to drug makers, will increase considerably.
Another trend supporting the growth of the pharmaceutical market is the increasing acceptance of Western drugs in China, particularly among the younger generation, despite strong competition from the traditional Chinese medicine (TCM) industry. Western medicines are generally regarded as more effective for infectious diseases, acute symptoms, illnesses, and surgical procedures. The growing trend toward self-medication also boosts the market.
The government intends to make pharmaceuticals one of China's pillar industries and has pledged to increase investment in the domestic pharmaceutical industry. It aims to develop new high-technology drugs and has offered incentives to domestic pharmaceutical companies to invest in technology transfer and research and development. The government has also established a 3-5 year protection period for certain imports in the wake of WTO entry. Non-tariff measures include establishing industry -specific supervision and administration systems on imports. The government is also actively encouraging domestic firm by increasing investment in enterprise R & D.
