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A Preliminary Survey
Researched & Prepared by:
Guangzhou CCM Chemicals Co., Ltd. Guangzhou, P. R. China
Copyright by Guangzhou CCM Chemicals Co., Ltd. (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: www.cnchemicals.com Tel: +86-20-3876 8926 Fax: +86-20-3876 8956
Main Content Page Executive Summary Methodology Glossary I-1 I-1.1 I-1.2 I-2 I-2.1 I-2.2 I-2.3 I-2.4 I-2.5 I-3 I-3.1 I-3.2 I-3.3 I-4 I-5 I-6 I-6.1 I-6.1.1 I-6.1.2 I-6.1.3 I-6.2 I-6.2.1 I-6.2.2 I-7 I-8 I-8.1 I-8.2 I-8.3 I-9 I-10 I-10.1 I-10.2 I-10.3 I-10.4 I-10.5 I-10.6 I-10.7 I-11 I-12 Brief Introduction to TCM Industry inChina History of TCM in China Popularity of TCM and TCM Therapy in China Situation of Traditional Medicinal Materials (TMM) in China Resources of Traditional Medicinal Materials Supply Continuability of Traditional Medicinal Materials Plantation Base of Traditional Medicinal Materials Governmental Encouraged Traditional Medicinal Materials Items in China Operation Mechanism of GAP for Traditional Medicinal Materials Situation of Formulated TCM in China Summary of the Formulated TCM Industry in China Inrtroduction to Concentrated Chinese Herb Granule Brief Introduction to Some New Forms of Formulated TCM in China Brief Introduction to Herbal Extracts in China Brief Introduction to Some TCM Manufacturers in China Import & Export of TCM in China Export Situation Character of the Export of TCM in China Destination Countries Export of Major TCM Items in the Past Years Import Situation Origin Countries Import of Major TCM Items in the Past Years TCM Entering the International Market, Difficulties & Achievements Some Commercial Facts of TCM Industry in China Economic Structure of TCM Industry Changes in Commercial Activities of TCM Industry in China Sales Network of TCM Brief Introduction to Some New Technologies in TCM Production Research & Modern Approach to TCM Governmental Plan for the TCM Research Involvement in the TCM Research Brief Introduction of the Achievement in TCM Research Modern Approach in the TCM Research Foreign Involvement in the TCM Research Summary of the Research on Formulated TCM New TCM Drugs Approved by SDA in the Past Four Years Involvement of Foreign-Brand TCM in China National Plan for TCM Industry 4 5 5 6 6 9 10 10 13 13 14 15 16 16 20 23 25 28 30 30 30 32 34 39 39 40 45 46 46 46 47 49 51 51 51 52 52 53 54 54 56 58
I-13 II II-1 II-2
Future Trend of TCM Industry in China Appendix Brief Introduction to the TCM Industry in Some Important Provinces Brief Introduction to Some Important Speices of Traditional Medicinal Materials Recommendations
64 68 70
the three most important sections are screening & planting of traditional medicinal materials.000~200. test. However China lacks of efficient system to ensure the TMM availability continuability and to ensure the product quality. application and promotion of formulated TCM.000MTs/year. Traditional Medicinal Materials (TMM) China is profound in TMM resources.000MTs. There are total about 12. Now they are developing new types like drop pill and injection. including 11.807 TCM species in China.000MTs. etc. The export of Chinese formulated TCM has been maintaining at the level of 40. The formulated TCM has rooted to the Chinese people as a convenient and cheap way in the actual therapy.146 species of medical plants. The annual output of formulated TCM is 150. Althought China is the origin country for formulated TCM.000MTs. China is strong in the export of TMM just because of the low price. The annual output of TMM is around 400. The major reason is that China lacks of standard system to ensure the production. More Chinese large TCM companies are conducting GAP program to ensure the TMM availability.Executive Summary In the TCM industry. China has been producing over 40 forms of formulated TCM. processing of concentrated Chinese herb granule and research on Formulated TCM. 1. The annual export of TMM is around 150. And central government encourages the plantation of TMM. description. 4 .581 species of medical animals and 80 medical minerals. Formulated TCM China has long history in the production. China shares much less market in the international market comaparing with Japan and South Korea. Chinese research and modern approaches to formulated TCM is governmental encourage and is aggressive. However there is a long way to go for Chinese formulated TCM to have competitive position in the world market.
The aim of this report is to provide basic understanding on the traditional Chinese medicine. concentrated Chinese herb granule. to make medicine and sell in form of pill. In recent years. and sold thereafter. grows in Chinese territory. a kind of Formulated TCM without boiling and usually for instant intake. extraction. Note: 1 USD = 8. customs statistics. the Chinese manufacturers have developed the concentrated Chinese herb granule.Methodology The sources of this report are various. industrial statistics. In fact the herbal extract should not belong to TCM. This form of TCM developed fasted in the past years because of its convenience in usages and good properties that the ancient TCM does not have. more and more Chinese factories began to extract active ingredients from the traditional medicinal materials or some natural herbs by using the western technology. . Consecutive market monitoring on the situation of traditional Chinese medicine has been conducted from 1997 to 2004. In the present report. government statistics. raw materials. for directly intake or eat with water. like drying under sunshine. etc. traditional medicinal materials. we discuss it within the Formulated TCM sector. powder. from such aspects as production.26 RMB 5 . Internet. Throughout this report we discuss the TCM industry in the following sections: Traditional Medicinal Materials (TMM) Formulated TCM or patented TCM Herbal extract Glossary . However we include the information of this sector for reference and comparison.Formulated TCM It is the medicine that people around the world have been referring to for centuries. The information of this report is dated to August 2004. journals. They include published magazines. so that to understand the competitiveness of Chinese TCM industry. especially herbs. It is made from traditional Medicinal materials. etc. etc. fabricated under simple physical condition without further processing. tincture. consumption. export. Herbal Extract In the recent years. technology..Traditional Medicinal Materials Natural resources. which is processed by boiling. with certain function in treating disease.
In the past centuries.I-1 Brief Introduction to TCM Industry in China I-1. glutinous rehmmania. Some of these TCM has 6 . etc. For a long time in the history. Any separate element will lost function if it is excluded from other elements in the TCM. All the activities on TCM were carried out by unorganized civilians. Chinese globeflower. including education & training support.000 years to the age of Sheng Nong. saffrom crocus. All herbs used to make TCM grow under nature climate. mostly for water boiling. mass commercial production involvement and long term plan design. There is no quantitative data in evaluating the affect and result of TCM. research support. There is no chemical method to extract the active parts. and archeological discoveries suggest the origins of TCM may stretch back at least 5. thunberg Fritillary. American ginseng. the TCM is characteristic for the following facts: There was almost no systematic plantation of herbs. corydalis tuber. In the past there is no organization to engage to the mass production. Dan Shen. medicinal evodia.500 years. They successively solved the problem of culturing technology for such herbs as coptis root. licorice. or the research on TCM. marine good. Chinese people hold the idea that the action of TCM is composed of several elements within TCM. especially in the 1980s and 1990s. boiling & processing. and promotion around the small villages. it also covers animals. grifolla umbelata has been applied in the commercial production. Prior to twenty century. which cure the disease in a synergetic way. and the extracts from these products. ginseng. The earliest written records of TCM date back 3. Later the plantation technology of tall gastrodia. Since 1960s. poeny. tall gastrodia. So far there are still tens of thousand of families around countries in China living on the technique inherited from their ancients. storage. Chinese people treat herbs with simple process. astragali. radix glahniae. The China government put a lot of capital and effort in developing and exploiting this thesaurus. eucommia bark. Nowadays the scope of TCM not only limited to herbs. the TCM production in China is characteristic for the family-mode. radix platycodi. coptis root. honeysuckle flower. Chinese researchers have put effort to introduce the plantation technology of traditional medicinal materials. the Chinese people have inherited from the ancestor the experience in knowing the function of some natural herbs and have accumulated innumerable and valuable recipes of herbs remedies. lycium. lactiflora peony root. The mass commercial production of TCM began after the foundation of Peoples’ Republic of China. These herbs are called traditional Chinese medicine (TCM). safflower. Chinese agelica.1 History of Traditional Chinese Medicine in China The term “traditional Chinese medicine” (TCM) is used to describe the system of medicine that has developed in China. honeysuckle flower. All the function and recipe is described on base of the past experience of folk healers or practioners. In fact they have conducted all the procedures from herbal collection. American ginseng.
The weak traditional medicinal materials industry lasted till 1995. more and more TCM have been exported to overseas and have been accepted by the foreign people. under the encouragement from local government. It is only since mid 1990s that the TCM industry began to go up. ginkgo extract from Shanghai. Some large enterprises were set up. It is reported that many of the TCM stocks had been sold out overnight. herbal supplements. basket fern. In 1997.or middle-size state enterprises. Following the development of rural side. In the early 1990s. The TCM industry increased in both production quantity and species number. for clinical trial application in cardiovascular disease. the total sales of traditional medicinal materials in 2003 increases 25-48% over that of 2002. 124 TCM pharmaceutical factories have been recognized as big. Many peasants suffered a lot from the herb plantation and lost confidence. But subsequence to this rush plantation wave is the dramatic drop of the price of traditional medicinal materials. As a result. including the chemical extraction method to make single compound medicine..000MTs. 21 Chinese-made herb products received US marketing clearance as food supplements. At present. there are over 800 TCM plants and 13. In the same year. over-the-counter (OTC) medicines and new drug applications. Later another product. However in 2003. with a total planting area of over 348. dietary supplements. 1 For a long time in the history. 900 million and the production output is 200. During 1980s. Some factories and workshops have come up to the GMP standards. In December 1997. the Chinese manufacturers began to introduce new and update technology from western & developed countries. Food and Drug Administration of USA (FDA) allowed herbal products to be promoted in the USA as health food. It can be said that SARS in China reactivated the Chinese market of TCM.000 hectares. the business of TCM grows gradually and stably. the SARS sweep in China arose the attention to the TCM. the TCM industry formed in China. went into the TCM plantation business. Following the price roar up since March 2003 (The price of some species like hurricane lamp. There are 500 kinds of medicines in over 40 different drug forms.000 farms specialized in production of traditional medicinal materials (TMM). the amount of households specialized in the production of TMM is over 340.000. The annual total output value is RMB13. more and more Chinese peasants. Compound Salvia Drop Pill made by Tianjin Tasly Pharm Group. there was a rush wave in China to plant traditional medicinal materials. In the same time. The business of traditional medicinal materials increased significantly.line production and diversified economy. honeysuckle flowers is even ten times that of before). In the 1990s. the FDA approved the first complex formula TCM product.become the main income for the local government and the local people. 7 . has got FDA clearance for clinical trails. From the investigation on the 17 major trade marts in China.
040.082.190.500 19.420 132.010 9.646.060.810 32.912.850 1% 100% 7.250 14.940 12.210 22.100 9.770 385.616.30 0 5% 5% 3% 3% 8.230 26.070 1.610 17.Table I-1.000) 2002 56% 26% 8% 0% 504.840 919.620 18.887.337.100 233.733.003.471. 8 .450 14.490 2.206.470 % 2000 % 2001 % 2002 % 2003 56% 51% 46% 52% 34% 31% 35% 30% 0% 9% 8% 9% 4% 2% 2% 0% 1.519.510 5.87 Section pharmaceuti Chinese cal industry medicine % 2003 2000 2001 Profit (RMB 1.760.571.000) 2003 163.335.840 660.920 % 2001 % 2002 58% 53% 25% 28% 0 5.870 2003 14.520.830 5.96 290.548.890.620 2002 129.99 0 245.023.550 7% 815.280 4.162.350 3% 100.560 6% 7% 8% 6% 0% 0% 0% 0% 100% 100% 100% 100% 1% 2% 1% 2% From the above information we can see that the TCM industry shares 25-28% of the total pharmaceutical industry in China and the profit from the TCM industry has been maintaining at 30-35% of the total pharmaceutical industry.170 987.675.010 69.143.803.944.896.30 0 7.482.330 21.370 1.576.302.890 52.Traditional Other Biopharm pharmace Sanitary aceuticals uticals 10.014.478.17 0 0 100% 100% 2.1-1 Position of TCM industry in the whole pharmaceutical industry in China Pharmac Industry Chemical s .490 24.440 5.830 1.640 7.377.400 8.490 297.570 1.840.462.870 Sales revenu e (RMB 1.956.410 273.233.41 2001 122.962.510 38.233.740 2% 2% 7% 8% 0 0% 0% materials Medical appliance eutical machiner ies Total 212.330 75.
I-1.2 Popularity of TCM and TCM Therapy in China Although it is called traditional, TCM has changed over time and is very much a part of the modern world. In its more than 2,000 years of recorded history, TCM has evolved under many influences, including politics, economics, science, technology, and social and cultural changes. At one point in its very long history, TCM came close to being officially replaced by Western medicine. With the fall of the Qing dynasty in 1911, China’s leaders were intent on creating a new and modern state, and that included Western medicine. By the mid-1950s, however, traditional Chinese medicine had regained popularity, and the first four of many medical colleges were established. TCM has continued to grow as a system of medicine, and educational programs ranging from technical certificates to Ph.Ds are available to students. TCM, particularly as it is practiced in China today, incorporates and adapts Western scientific and technological developments and applies them where and when appropriate. According to statistical data of 1993, it is estimated that there are now 2,457 specialized traditional Chinese hospitals including 39 TCM-WM integrated hospitals and 129 nationality medicine hospitals. Traditional Chinese medicine hospitals have been established in 75% of the counties across the country. TCM departments, with 35,000 ward beds, have been set up in over 95% of the general hospitals. The difficulty to seek TCM treatment in rural areas has been preliminarily solved. Throughout the country, the traditional Chinese hospitals have 222,000 ward beds and 249,000 TCM practitioners; and they have trained a large number of senior TCM- WM doctors and nationality medicine doctors. The hospitals have annually treated 200, 000,000 outpatients and 2,700,000 inpatients. Some hospitals and specialists have got great breakthroughs in the treatment of cardio -cerebro-vascular diseases, hematopathy, immunologic disease, cataract, fractures, acute abdomen, calculus of urinary system, tumors, dermatopathy, anorectal diseases, gynecological diseases and paediatric disease. TCM has not only systematic theory but also plentiful therapeutically methods including medical Qigong and dietotherapy. It is warmly welcomed by the Chinese people, and has attracted much attention from the people all over the world.
I-2 Situation of Traditional Medicinal Materials (TMM) in China I-2.1 Resources of Traditional Medicinal Materials Data from Census in Mid 1980s
China is profound in the resource of traditional medicinal materials, which mainly distributes in Sichuan, Zhejiang, Henan, Anhui and Hubei. During 1983-1987, central government sponsored a first census for the resources of traditional medicinal materials in China. This is so far the most comprehensive census on the TCM resources in China. (Note from CCM: Some experts proposed to conduct the survey once again in 2004 but so far there is not any essential progress one the second time census.) . Here we summarize in brief the findings of the census: There are total about 12,807 TCM species in China, including 11,146 species of medical plants, 1,581 species of medical animals and 80 medical minerals. Of these around 1,000 species are often used by the Chinese people, 40% of which are cultured by human being. China has set up about 600 production bases for TCM plantation. The total plantation area is about 0.4 million hectares, yielding to about 0.35 million MTs of TMM per year, 75% of which are exported to overseas at low price and in raw material form. Now we introduce in brief the reservation of TMM in China, with a focus on herbals resources A: herbals There are 320 kinds of herbal used as traditional medicinal materials. Among them 170-200 species are wild grown and 120-150 species are planted. The reservation for them is 8.50 million MTs and 0.35 million MTs, respectively. The major items of wild grown herbals are: Reservation of 400,000MTs: licorice, ephedra, kender, acanthopanax root Reservation of 100,000-400,000MTs: atractylodes rhizome, baical skullcap root, radix sanguisorbae, flavencens, langdu root, red peony root, basket fern, hairy vein agrimony Reservation of 50,000-100,000: radix sophorae subporstratae, herb of duch rushes, motherwort, herb of virgate wormwood, pueraria root, rhizome of skunk bugbane, cocklebur fruit, argyi leaf, bupleurum, hurricane lamp, phellodendron bark, ash bark, fragrant solomonseal rhizome, five leaf akebia, dipsacus root, diverse color cinquefoil, Chinese magnoliaving, radix clematidis, balloon flower, herb of common herons bill, polygonum bistort and petrified bouquet The major items of human planted herbals are: Output of 10,000MTs/year: rehmannia root, common yam rhizome, tuckahoe (Indian
bread), Tang-shen, Chinese Angelica, dried ginger, coix seed Output of 5,000-10,000MTs/year: cassia twig, Isatis root, astragalus, common andrographis, large head atractylodes rhizome, chrysanthemum, honeysuckle flwoerhoneysuckle, Danshen root, hawthorn, Dyers wood leaf, bitter orange, dahurian angelica root, White peony root, rhizome of Sichuan lovage, balloon flower B: Animals Among the 29 species of animal medicines, 27 species are wild, with reservation of 230,000MTs. The major species are gecko, multibanded krait. China is in need of muskiness, sea horse, tortoise shell, fresh-water turtle shell, hedgehog skin, scorpion, pangolin. 2 species are human breeding they are hairy deer horn, mother-of-pearl, with annual output of 810MTs. C: Minerals Current Situation
In the ninth-five-year period (1996-2000), China never stopped the endeavors to find out the effective system for the production of traditional medicinal materials and the novel model for the construction of production bases for TMM. As a result, many production bases of traditional medicinal materials formed on base of the native TMM. At the same time, the Chinese people have succeeded in the plantation of some wild herbs. Some of the plantation herbs is also supplying to the oversea market. By 2002, 200 kinds of traditional medicinal materials by plantation have become the supporting items in the supply in China. The output of TMM from the plantation bases accounts for 30% of the total collection of traditional medicinal materials in China. So far China has made success in the introduction of American ginseng, round cardamon seed, lilac, crocus, boat-fruited sterculia. And China has found associations for such large items as Ginseng, American ginseng, corydalis tuber, and Sanqi. Meanwhile the Chinese researchers are finding ways to substitute some natural TCM like musk, bezoars, etc, which are rare in the natural resources. It is reported that the Chinese researchers already launched the research on the substitutes for tiger bone, bear gall, etc.
Cantonese fingered citron. rosa banksiae. schizonepeta spike ginkgo biloba. ephedra. dahurian angelica root. ladybell root. Tang-shen rhubarb. balloonflower. hairy deer horn Inner Mongolia astragalus. bitter orange. dendrobium stem rough gentian. phellodendron bark Sanchi. resurrection lily rhizome dahurian angelica root. chrysanthemum tuckahoe (Indian bread).1-1 Major TCM species and their distribution in China Location Sichuan Guangdong Yunnan Guizhou Heilongjiang Jilin Major items rhizome of Sichuan lovage. homalomena rhizome. hog fennel root. muskiness licorice. root-bark of peony. astragalus. coix seed peony. notoperygium root alkanna tinctoria. rose flower Danshen root Table I-2. Tuber of Pinellia . evodia fruit fragrant solomonseal rhizome. bupleurumstellaria root Chinese Angelica. Tuber of Tall Gastrodia. magnolia bark. cassia. tsaoko cardamon. eucommia bark oriental wormwood.dwarf lily turf tuber. ephedra aster. prepared aconite root. fritillary bulb. morinda root. Coptis Root . fritillary bulb. safflower. rosa banksiae. pawpaw 12 . epimedium herb.Table I-2. honeysuckle flwoer. ephedra dendrobium stem. rehmannia root. asafetida. licorice. tuckahoe (Indian bread) evodia fruit.1-2 Some major traditional medicinal materials species in western provinces Major items Ningxia Gansu Qinghai Xinjiang Sichuan Yunnan Guizhou Tibet Inner Mongolia Guangxi Chongqing medlar. plantain seed honeysuckle flower. radix asparagi amomum villosum lour. mongolian snake gourd common yam rhizome. hurricane lamp. Isatis root gardenia. chrysanthemum. fritillary bulb. Chinese Angelica eucommia bark. blue shell.川乌 prepared Sichuan aconite root. achyranthes root. broomrape rhizome of Sichuan lovage. common andrographis Sanchi. pubescent angelica root figwort. licorice Ningxia Hebei Jiangsu Zhejiang Anhui Jiangxi Shandong Henan Hubei Hunan Shaanxi medlar. Chinese magnoliaving ginseng. herb of virgate wormwood. fritillary bulb. aweto. arge head atractylodes rhizome. Coptis Root . chrysanthemum corydalis tuber. patchouli.
Table I-2. consumers is not effectively. which means the local peasants have to suffer from this. the Chinese people started to set up numerous of plantation bases. collectors. which means the small scale and outdated production facilities. Guangzhou Baiyunshan TCM Factory Yunnan Wenshan Sanchi Medicine Co. Thirdly. the judgment for the qualified traditional medicinal materials has to resort to the naked eye. The present problem for the stable supply of TMM lies in the following facts: First the Chinese production of traditional medicinal materials has to depend on the local peasants. There is not standard for the plantation and the test.000 hectares. the exorbitant exploitation of the TCM resources ever-contaminated environment make the diminish or disappear of some wild TCM species. especially the Formulated TCM. Species rhizome of Sichuan lovage Danshen root common andrographis Sanchi Location Sichuan Sichuan Guangdong Yunnan 13 . Secondly. At last. This situation is still the major bottleneck for the development of TCM in China. In addition. screening. in such areas as seeding. This is also one of the major obstacle for the continuous development of TCM in China. I-2. Thus the plantation and price of traditional medicinal materials fluctuate much. China is weak in the standardization of traditional medicinal materials. Sichuan Zhongji Industrial Co. which consumes large quantity and requires production of traditional medicinal materials.2 Supply Continuability of Traditional Medicinal Materials The stable supply of traditional medicinal materials is a fundamental base for the development of TCM industry in China.. As a result. Ltd. By 2002.3 Plantation Base of Traditional Medicinal Materials In order to solve the problem of supply continuability. Ltd. Ltd. trader. The total plantation area is 400. identifying the qualified species of traditional medicinal materials. breeding..3-1 some production bases of traditional medicinal materials in China Sponsor company Sichuan Dikang Pharmaceutical Co. the market information among the local peasant is not workable. the metal content and agrochemicals residue in the traditional medicinal materials is still an outstanding problem for Chinese product. some are even frustrated by the fluctuation. China has set up over 600 plantation bases for traditional medicinal materials . the communication among the peasants.I-2. At the moment..
Zhejiang Tianhuang Natural Growth Co..Yunnan Xishuangbanna Tropical Botanical dragon’s blood gallnut dendrobium stem ginseng baical skullcap root astragalus safflower Isatis root ginkgo biloba 叶 coix seed dendrobium stem root-bark of peony honeysuckle flwoer eucommia bark spirulina rhodiola root Danshen root St. Ltd. Anhui Huaibei Mineral Bureau Forestry Department Beijing Tongrentang Medicine Factory Hunan Zhangjiajie Pharmaceutical Factory Hunan Aidisheng Micro-alga Co. chastetree fruit. Tuber of Tall Gastrodia. ephedra I-2. bupleurum.4 Governmental Encouraged Traditional Medicinal Materials Items in China In Oct 2003. Ltd.astragalus. gallnut. dragon’s blood.. lilac. alismatis rhizome. asarum. Tibet Hongjingtian Development Co. Ningxia Yingchuang Natural Products Co. frog oil. SDA listed 39 kinds of traditional medicinal materials as especially encouraged items of TMM either for plantation or for exploitation of commercial value. safflower. achyranthes root. Tianjin TASLY Group Xi'an Tiancheng Pharmaceutical Co. magnolia flower. Ltd.safflower. Ltd. common yam rhizome. Shanghai Agriculture & Industry & Commerce Group Jiangsu Gingkgo Bio-chemical Group Zhejiang Kanglai Pharmaceutical Co. centipede. ear dust of yellow croaker. eucommia bark. phellodendron bark. Ltd. fritillary bulb. ginkgo biloba. gadfly. barbat skullcap. magnolia bark. Coptis Root ... belamcanda rhizome. Harbin TCM No. fresh-water turtle shell. Ltd. medicine Chinese date. balloonflower. They are: . dodder. asafetida. Isatis root. Guangsu Dingxi Agriculture Research Development Center Qinghai Jingzhu Tibet Medicine Co. John’s Wort Chinese Angelica Tibet medicine Yunnan Guizhou Guizhou Heilongjiang Hebei Inner Mongolia Shanghai Shanghai Jiangsu Zhejiang Zhejiang Anhui Shandong Hunan Tibet Tibet Shaanxi Shaanxi Gansu Qinghai Ningxia Yinchuan Medicine Factory Guizhou Forest Institute Nanjing Jingling Pharmaceutical Factory Heilongjiang TCM United Co.2 Factory Inner Mongolia Ruian Grassland Eco-economy Base Shanghai Medicine Corp. mongolian snake gourd. homalomena rhizome. tsaoko cardamon. Ltd.. 14 . ebony. swimming bladder.. dendrobium stem. Ltd...
By 2004. Here are some modes for the GAP operation: Formulated TCM enterprises + Research units + Plantation bases + Peasants/employees Commercial companies + Research units + Plantation bases + Peasants/employees Companies + Research units + Plantation bases + Peasants/employees Research units + Peasants/employees 15 . In this practice. the China government promotes the GAP mechanism among the Chinese TCM enterprises. the TCM enterprise or TCM business units are encouraged to enter the countryside and share the adventures and the profit of TCM production with the local peasants.I-2. there are 149 GAP bases for traditional medicinal materials production.5 Operation Mechanism of GAP for Traditional Medicinal Materials GAP: Good Agricultural Practice of Medicinal Plant & Animal Since end 1990s.
059 Formulated TCM factories in China. respectively. Characteristics of Formulated TCM in China The items that have fame and special functions are still popular in the international market.069 billion. The total output of Formulated TCM in 2001 is 300. These Formulated TCM include afrodyn. with nearly 8. Some statistics of TCM industry in 1996: The total asset value: RMB13. The total export value of TCM is USD589 millions.6 billion and RMB4. There are 8. The total industrial value of TCM industry is RMB60.I-3 Situation of Formulated TCM in China I-3. The profit after tax is RMB1. In 2001. aerosol. including USD463 millions of traditional medicinal materials and USD 135 millions of Formulated TCM.34 billion Total production value is RMB23. The total production of TCM preparation is 199. Formulated TCM accounts for 73% of the total TCM. among the consumption of TCM.6 billions.5% of the total medicines in China (including western/chemical medicine) Sales value of TCM in 1996 was RMB21. there are 1. the total industrial value of Formulated TCM is RMB48 billion. accounting to 53.7% of the total industrial revenue of medicine industry in China. there are 1. In early 2000s.94 billions. accounting for 21. But most of them are small in size.91 billions.000 specifications and the annual output of Formulated TCM reaches to 370. The sales revenue and the net profit are RMB44. accounting to about 21.5% of total production value of TCM in China.000MTs.54 billions. Certificated organizations to do TCM business legally: 11.000MTs. injection. In 2000. China can produce about 50 formulations of Formulated TCM. etc.9 billions. The total production value in these factories is RMB12.1 Summary of the Formulated TCM Industry in China Some Data of the Achievement of Formulated TCM Industry in the Past Years In 1996.107 factories of Formulated TCM producer to produce about 40 categories of various Formulated TCM including pill.339 There are 470 TCM species with production value more than RMB5 millions and 21 species with production value more than RMB100 millions. There are 182 medium to large size TCM factories in China.000 specifications. 16 .360 Total commercial station for TCM amounts to 35. In 1998. while it was only 60-67%% in the 1980s. anti-affection. tonics.000 MTs.
There is not standard for the preparation of Formulated TCM. or plantation of TCM has a relatively short history but the plantation technology is out of date. which makes Chinese material less competitive to oversea materials. The management on the TCM culturing and the processing technology is not standard. The agrochemicals or poisonous chemical remained in the TCM becomes an important issue for the export. Those that are protected by the central government are popular in the market. There is not comprehensive standard to test and ensure the product quality. Chinese materials have been either rejected or lowered in price. Problems for the Formulated TCM The traditional grown TCM still domains the production style. The price of Formulated TCM kept increasing. so lead to the out-of-control of the TCM and the bad quality of the products.Tonics and the healthcare products still dominate the market and their sales keep increasing. especially those Formulated TCM whose raw materials are endangered or rare. The natural resource for the TCM has been exploited irrationally. So far the standard for Formulated TCM still remain at the level of qualitative test or test on some specific component. 17 . So the quality of cultured TCM is not stable. The culturing.
236 38.530 79.823 88.803 159.148 20.046 4.505.127 41.016.856 2.657 99.789 275.867 94.436 2.920 927 1.058 514.285 16.658 16.087 60.344 10.575 26.737 69.877 178.376 16.1-1 Capacity and output of Formulated TCM in the past years (Unit: MTs) No.911 10.842 184.328 37.102 114.147 3.396 5.844 2002 34.713 927 1.391 6.726 36.964 48.526 3.089 203.422 144.421 25.011 109.657 57.717 51.859 110.531 109.789 26.047 8.480 53.018 59.618 106.583 1.691 214.372 1 honey pill 18 .526 38.919 6.429 73.348 6.248 1.000 3.643 20.197.594 12.563 453.025 127.099 40.123.490 78.497 7.149 25.716 188.310 38.804 48.909 14.990 89.447 40.021 2001 29.081 4.770 924.465.411 1.205 190. Form Output Capacity 2 water paste pill Output Capacity 3 tablet 4 powder 5 injection 6 boiling 7 syrup 8 honey paste 9 wine 10 plaster 11 tincture 12 oral liquid 13 capsule 14 other Total Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity Output Capacity 2003 26.324 36.735 1.738 33.767 107.518 11.826 2.809 49.119 45.396 5.820 8.245 11.429 83.643 155.120 5.472 68.771 38.780 11.440 18.953 338.264 10.675 70.391 11.017 1.969 2.527 2.900 78.280 61.243 66.243 6.Table I-3.576 4.978 118.660 447.272 261.894 3.286 47.298 16.830 30.117 12.353 51.786 2000 35.869 60.798 108.659 4.
Table I-3.1-2 Sales revenue of major Formulated TCM in China (sequence based in 2003) (Unit: 1,000 RMB) Form No. Name 1 Lv Jiao Bu Xue 2 Fu Ke Qian Jin 3 Si Qi Kang 4 Qing Kai Ling 5 Shi Zi Qiang Shen boiling Tablet injection injection Wine 2003 Sales revenue 2,355,290 2,210,070 1,001,580 893,181 828,000 807,850 782,010 614,850 556,950 523,970 514,049 494,450 491,055 409,230 Granule Tablet boiling tablet injection 387,548 377,319 357,020 341,607 335,639 277,691 % 1.76% 1.65% 0.75% 0.67% 0.62% 0.60% 0.58% 0.46% 0.42% 0.39% 0.38% 0.37% 0.37% 0.31% 0.29% 0.28% 0.27% 0.26% 0.25% 0.21% 59,450 0.09% 33,860 0.05% 84,270 0.12% 304,070 0.44% 261,710 0.38% 117,634 0.23% 25,999 0.05% 85,316 0.16% 83,490 237,920 0.46% 126,450 444,056 0.85% 216,770 324,330 0.47% 2,979,002 5.73% 102,750 71,390 0.10% 442,370 0.64% 390,070 0.56% 37,410 0.07% 482,360 0.93% 451,640 311,160 0.45% 52,790 0.08% 70,200 0.14% 63,820 0.12% 19,173 0.04% 2002 Sales revenue % 191,610 0.28% 68,200 0.10% 17,530 0.03% 2001 Sales revenue 2000 Sales % revenue
169,117 0.33% 135,070 60,993 0.12% 176,236 0.34%
180,610 0.26% 1,661,442 3.20%
6 Bao Bao Yi Tie Ling Paste 7 Man Yan Shu Ning 8 Liu Wei Di Huang 10 Yan Shu 11 Liu Wei Di Huang 12 Si Mo Tang granule Concentrated pill injection Pill oral liquid 9 Gu Han Yang Sheng oral liquid
13 Jin Song Zi Hou Bao Tablet Red Heart K oral liquid 14 Shengxue 15 Tie Pi Feng Dou 17 Gan Fu Le 18 Yi Gan Ning 19 Qing Chun Bao 20 Shen Mai Total 16 Cordate houttuynia injection
133,799,900 100.00% 69,072,400 100% 51,959,770 100%
188.10% 257.590 8.585.680 2.030 7.02% 1.533.07% 216.64% 1.741.19% 166.340 3.440 2.43% 8.682.62% 2.162.140 11.96% 1.240 4.584.942.320 5.620 2.041.959.757.334.53% 8.42% 2.019.19% 250.137.480 0.37% 882.66% 852.900 100% 69.350 5.995.363.500 0.67% 319.840 3.913.69% 3.370 1.409.88% 3.69% 2. Year Sales revenue % 2002 Sales revenue % 2001 Sales revenue % 1 Jiangsu 2 Guangdong 3 Zhejiang 4 Shandong 5 Shanghai 6 Tianjin 7 Heilongjiang 8 Henan 9 Shaanxi 10 Hubei 11 Liaoning 12 Beijing 13 Sichuan 14 Shanxi 15 Jilin 16 Chongqing 17 Fujian 18 Anhui 19 Hebei 20 Inner Mongolia 21 Jiangxi 22 Hunan 23 Hainan 24 Yunnan 25 Guangxi 26 Gansu 27 Ningxia 28 Qinghai 29 Guizhou 30 Xinjiang 31 Tibet Total 20.130 6.903.030.46% 583.500 0.83% 2.12% 1.824.240 2.287.21% 5.290 1.500 0.09% 1.810 0.11% 7.950 1.304.400 0.790 0.160 0.731.38% 384.790 0.78% 716.48% 51.20% 3.52% 1.586.72% 3.06% 38.824.920 1.98% 1.12% 836.69% 4.975.160 0.13% 2.940 2.290 8.62% 269.194.70% 4.48% 225.630 1.440 0.380 4.120 6.88% 2.580 1.024.720 4.600 4.170 2.030 3.440 5.25% 2.370 3.56% 4.510 3.945.760.12% 1.43% 1.32% 1.930 5.745.217.11% 1.80% 1.10% 2.20% 692.85% 1.Table I-3.100 4.130 4.660 3.64% 1.70% 3.800 0.360 4.590 2.660 3.580 1.26% 729.420 2.18% 1.21% 542.28% 761.790 1.660 7.465.359.390 5.670.64% 606.1-3 Sales revenue of Formulated TCM in different provinces in China (sequence based in 2003).577.603.31% 1.450 0.273.68% 2.19% 1.000RMB) 2003 No.450 18.290.11% 251.79% 1.790 1.575.33% 2.780 0.070.799.072.52% 1.407.260 2.65% 11.53% 2. (Unit: 1.670 1.17% 58.506.480 0.37% 2.167.060 1.170 1.850 0.270 1.500 4.02% 3.33% 36.699.48% 11.711.389.88% 1.65% 4.24% 753.090 1.840 1.81% 529.27% 4.520 3.491.280 4.583.39% 256.770 100% 133.430 0.280 6.961.649.766.68% 1.06% 1.550 0.187.770 2.45% 2.640 0.02% 3.130 0.400 6.04% 2.974.920 8.830 0.445.06% 87.113.54% 523.82% 4.54% 12.400 100% I-3.49% 14.130 10.530.910 10.34% 14.940 0.212.260 1.25% 1.200 0.2 Introduction to Concentrated Chinese Herb Granule Problems for the Concentrated Chinese Herb Granule Production in China 20 .102.12% 151.260 1.730 0.360.229.048.31% 1.870 0.330 1.42% 605.93% 70.440 8.730 15.060 2.88% 5.930 1.
B: Another problem is that the product quality of concentrated Chinese herb granule is not uniform.A: By 2002. There are many fake products in the market. Shanghai and Tianjin area. two third were confirmed before 1985. The production of concentrated Chinese herb granule has been shrinking. Also it is reported that there are some detritus in the concentrated Chinese herb granule C: In case of commercial circulation.000 species of products. there are about 700 manufacturers of concentrated Chinese herb granule in China. the interest of the legal manufacturers has been greatly impaired. So far it is hard for the legal TCM producers to maintain the daily operation if they only focus on the concentrated Chinese herb granule. This brings much inconvenience to the license management for concentrated Chinese herb granule. Most of these manufacturers locate in Beijing. so far there is not clear and authentic definition on the term concentrated Chinese herb granule. the traditional medicinal materials are listed as byproduct of agriculture. The processing of traditional medicinal materials is not standard or professional. But only 5. Many of the Formulated TCM have different name but in fact they are referring to the same goods.000 above-mentioned species. especially the different between concentrated Chinese herb granules. Of the 5. It is reported that there are about 26 kinds of formulations with nearly 10. Because there are many illegal manufacturers in the market. Some manufacturers still sell the poisonous TCM in the market that are forbidden to sell in China.000 of them comply with the state drug standard. In China. Some traditional medicinal materials is not processed before they are promoted in the store. 21 . also some manufacturers add impurities into the product and sell the product at the normal price. And one third was confirmed after 1985 when China set up new method to evaluate the Formulated TCM.
000 5.030 510 66.180 77.700 8.64% 2.280 2.13% 1.77% 40.500 16.2-2 Sales revenue of concentrated Chinese herb granule in different provinces in China (sequence based in 2003).46% 1.15% 0.950 2.850 410 11.49% 24.110 2.200 23.51% 1.16% 3.47% 14.43% 1.170 2.64% 0.08% 3.20% 0.31% 58.94% 28. Location/year 2003 1 Shanghai 2 Guangdong 3 Sichuan 4 Anhui 5 Jiangsu 6 Hebei 7 Tianjin 8 Gansu 9 Guizhou 10 Beijing 11 Xinjiang 12 Shanxi 13 Inner Mongolia 14 Qinghai 15 Guangxi 16 Henan 17 Hainan 18 Chongqing 19 Hubei 20 Hunan 21 Jiangxi 22 Fujian 23 Zhejiang 24 Shandong 22 % 2001 2003 2002 2001 2002 331.120 20.19% 1.93% 0.88% 10.28% 1.49% 0.36% 35.580 12.96% 0.960 27.25% 10.42% 21.450 180.270 142.610 34.45% 100% 4.560 3.670 53.40% 6.44% 8.100 4.42% 34.83% 3.960 14.030 9.Table I-3.260 921.45% 4.070 8.90% 58.46% 26.200 2.250 96.17% 6.050 52.290 0.86% 0.270 261.22% 9.17% 10.000 1.96% % 2001 2002 34.270 41.03% 2.060 67.91% 18.100 79.570 40.56% 31.61% 0.250 28.840 90.75% 0.20% 0.52% 3.780 11.75% 21.59% 3.360 5.46% 7.950 2.94% 100% 100% Table I-3.890 21.13% 0. (Unit: 1.08% 0.39% 4.950 83.570 10.66% 2.31% 7.830 75.20% 4.520 31.2-1 Number of different ownership of concentrated Chinese herb granule producers in China Year 2000 State owned enterprise Collective owned enterprise Stock company Foreign-involvement enterprise Other types of enterprise Total 23 6 19 12 7 67 Number 2001 17 3 17 9 2 48 2002 14 7 22 14 7 64 2000 8.37% 1.480 .09% 13.05% 1.35% 0.26% 10.88% 6.78% 4.620 9.570 11.680 76.42% 1.30% 9.860 7.820 24.970 58.06% 8.33% 35.420 80.46% 0.000RMB) Sales revenue No.23% 0.38% 17.800 175.21% 0.85% 10.
drop pill of daturian rhododendron oil. tea. the production of drop pills started from 1958. This form of preparation was listed in CP standard in 1977.44% 818.310 3. etc. into incompatible phase to obtain the solid form preparation for oral intake. Now we introduce in brief some new formulations in China.470 559. the following drop pills have been approved for pre-clinical research: Xue Sai Tong drop pills Huang Danshen root drop pills Shen Xiong drop pills Huo Xiang Zhen Qi drop pills Bupleurum pain alleviation drop pills Jiu Jun drop pills Qing Kai Ling drop pills Anise oil drop pills Common andrographis lactone drop pills Vitex oil drop pills So far the most successful drop pill in China is composite Danshen drop pill that was developed by Tianjin Tasly Group in 1990-1992.205.830 6.48% 0. By 2003. supercritical extraction. In China.77% 0.900 5. liniment. Later in order to improve the absorption ability and to best embody the affective ingredient. etc. injection. wine. there were 9 kinds of drop pills including composite Danshen drop pill. powder injection. Another active producer of drop pill in China is Guizhou Huangguoshu Lishuang 23 . gel.610 15. after the mixture is melted. some new types of formulations researched and produce like concentrated pill. With the employment and industrialization of new technologies like super filtration.25 Heilongjiang 26 Shaanxi 27 Liaoning 28 Jilin 29 Yunnan 30 Ningxia 31 Tibet Total 2. tablet.70% 0.450 0. Drop Pills Drop pills is made by dropping the solid or liquid pharma and its matrix. etc. powder. some formulations were changed to oral liquid. By 1995. paste.850 100% 100% 100% I-3.3 Brief Introduction to Some New Forms of Formulated TCM in China Traditionally there are about 40 kind of formulations including pill. cream. aerosol . boiling. soup.130 2.69% 2. capsule.
Wuhan Pharmaceutical Factory began to produce TCM injection made from Chai Hu. That is why the SDA suspended the license of TCM injection in 1985-1990. Later in 1954.3-1 TCM injection approved to used in China in 1985-2001 No. In the past fifty years. Anti-tumor Cerebrovascular disease Anti-tumor Year to approve 1993 1993 1993 1994 1994 1995 1995 1997 24 . that produces Yan Li Suang buccal drop pills. TCM Injection The first TCM injection was found out in 1940. the TCM injection development in China has not been smoothly. relieving Year to approve 1989 Table I-3. angina Anti-tumor Anti-tumor Anti-tumor Dysuria raised from hyperplasia of prostate Infection of the respiratory Preventing asthma 1998 1999 1994 1995 1996 1996 1997 Indication/function Preventing cough Anti-tumor Icteric hepatitis Infection of the respiratory 1989 1993 1994 asthma.3-2 Herbal injections approved to used in China in 1985-2001 No.. 1 2 3 4 5 6 7 8 9 10 11 Name of TCM injection Zhi Chuan Ling Mushroom polysaccharide Bitter Chinese goldthread Shuang Huang Lian (freeze dry) powder injection Dan Shen powder injection Kang Lai Te (coix seed oil) De Li Sheng Shen Qi Fu Zheng Chuan Shen Tong Shuang Huang Lian Dripping Chuan Ke Zhi Coronary heart disease. angina Anti-tumor Assisting drug for arrhythmia. Table I-3. Now there are 11 TCM injection and 8 herbal injections approved to use in China. 1 2 3 4 5 6 7 8 Name of TCM injection Lan Xiang Xi emulsion Sophora flavescens Puerarin Kurarinone Astragalus Paclitaxol Deng Zhan Hua Su Mushroom polysaccharide powder Indication/function Anti-tumor Anti-tumor Coronary heart disease. The major reason is that it is hard to control the quality of TCM injection. Ltd.Pharmaceutical Co.
920 22.8 1998 115. St. It is reported that China exported 9. However the sales revenue in most Chinese producers are quite small. So the total number of producers reached to nearly 300. E. anisodine. garlic. bilberry. By early 2000s. hop.g. Among some items that are popular in the international market.2 Entering 2000s. tropine. the herb medicine accounts about half the market. gastrodine.I-4 Brief Introduction to Herbal Extracts in China Brief History In Chinese pharmaceutical market.g. with no more than USD10 million. centela (cat’s foot).. John’s Wort. indirubin.000 20. By end 1990s. etc.000USD) % to the total TCM 1996 66. In the countryside. valerian. the herbal extract has not been developed fast until in 1997. Ginkgo is oversupply in China.4 1999 104. many are available in China but have not been developed to large scale as in the oversea countries. St. Some herb extract resources are over supply in China. 25 . some Formulated TCM producer and even some fine chemical producers entered this market in end 1990s. So far the Chinese researchers have extracted 400 species of natural active compound and their derivatives. like berberine. But for some unknown reasons.000MTs resource of St. In the past the Chinese scientists have developed over 40 kinds of new herb medicines. scopolamine. a lot of herb extract manufacturers began to extract it and launch the extract into the international market. these medicines have not entered the international market but been exported as raw materials. For many years.. And there are over 500 kinds of herb medicine preparation. over 60% people would like to use herb medicines to treat diseases. There are about 800 kinds of herb medicines make from the affective parts of herb. John’s Wort. Table I-4-1 Percentage of herbal extracts in the past years Year Value (1.370 13. for example. John’s Wort. E. green tea.937MTs of herbal extract in 1999. tetrahydropalmatine corydalis. etc. China is plentiful in the herb resource but many resources have not been exploited successfully.7 1997 91. ginger. In addition. the annual export of herbal extract from China is about USD100 million per year however the import value is reported to be about USD 600 million. there are about 200 professional companies engaging in the production of herbal extract in China. China has about 4.670 9. the competition of herbal extract becomes severe and the profit from the herbal extract production is no long as large as it was in end 1990s so many of Chinese manufacturers have to stop the production or switched to produce other products.
Chinese Angelica. In CP2000.000USD) 172.870 28. Table I-4-2 Export of herbal extract to major countries in 2003 Country Japan USA Germany Hong Kong South Korea Singapore Major Products of Herbal Extract Export value (1. magnolia bark.ginkgo biloba. red clover. astragalus.54% -1. Chinese magnoliaving. John’s Wort.55% -5.18% +4. 26 .700 Increment over 2002. ginseng extract.760 114. etc. glossy ganoderman. because it is a new idea in China.06% +31. % + 24.000 98. Composite component extract: Pu Zhong Yi Qi extract Active ingredient extraction or monomer compound extraction like soybean isoflavone. catechin. the export of herbal extract to South Korea and Singapore decreases.62% -17.710 19.77% Generally there are about 80 kinds of herbal extracts in China. But in 2003. China use the term grease or cream to replace the term of herbal extract. huperzine .000 54. resveratrol. St. acanthopanax root. Generally the herbal extract can be classified as follows: Single component extraction: like bitter orange.It should be pointed out that there is not the so-called herbal extract in the CP standard.Major Technologies Here is the technology used for the herbal extract in China. caltrop.
red clover aroma oils. natural vitamin E Garlic extract Chinese Angelica and volatile oil resveratrol 27 .Table I-4-3 Application of new technologies in the production of herbal extracts Technology Large pore adsorption resin separation Ion exchange resin Adsorption chromatography Typical herbal extracts ginkgo biloba. ginkgo lactone High speed countercurrent distribution chromatography tea extract EGCG continuous counter-current extraction Supercritical extraction Freeze drying Micro encapsulation Enzymolysis green tea. soybean isoflavone huperzine-A Paclitaxel. aroma.
By 2000 it is expected that there will be five companies with annual sales of between USD240 to USD 360 millions.I-5 Brief Introduction to Some TCM Manufacturers in China Basically the Chinese TCM manufacturers can be classified into three categories: Manufacturers focus on the traditional formulations and traditional manufacturers process. there were 1. 28 . Manufacturers focus on modern technology and formulations. etc. Typical enterprises include Zhejiang Kangenbei Group. Zhangzhou Paizaihuang and Zhejiang Huqingwu Tang. Beijing Tongrentang Group. The typical enterprises include Yunnan Baiyao Group. The typical enterprises include Tianjin Tasly Group. and one with annual sales of more than USD 1 billions by the year 2010.283 TCM manufacturers in China. there are 1. By end 1990s. Donge Ejiao Group. By 2002. Chiatai Qingchunbao Group.059 TCM manufacturers but the government has initialized consolidation of the TCM production base through mergers and acquisitions to form large research –base TCM enterprises. Manufacturers focus on modern herbal medicine.
.300 1. Ltd.220 571. 12 Hunan Jiuzhitang Co..317. Ltd.Table I-5-1 Top 20 manufacturers of Formulated TCM in China (sequence based on 2003) Sales revenu No.. Ltd...278. Ltd. Ltd.320 415. Factory List List List List e 2001 (RMB1.537.099. 11 Shaanxi Topsun Group Co.210 511.501. 10 Ltd. Guangdong Sanjiu Medical and Pharmaceutical 17 Co.519. Ltd.660 N/A 1. Jilin Xiuzheng Pharmaceutical Group Stock Co.. 8 Jiangsu Nanjing Medicine Group Co. 2 Tianjin Zhongxin Pharmaceutical Co.002.150 2003 2002 2001 2000 Sales revenue 2000 (RMB1.050 2. 15 Shandong Dong-e E-Jiao Group 16 Shandong Lunan Pharmaceutical Co.080 1 2 3 4 5 6 4 12 7 1 2 6 5 4 3 4 12 3 1 N/A 2.310 29 .. 19 Henan Wanxi Pharmaceutical Co..310 7 8 9 6 8 13 8 8 7 11 1.690 303.590 N/A 454. 4 Tianjin TASLY Group 5 Jiangxi Huiren Group 6 Shanghai Lei Yun Shang Pharmaceutical Co.. 13 Jiangxi Jiangzhong Pharmaceutical Co. 9 Sichuan Chengdu Diao Group Zhejiang Chiatai Qingchunbao Pharmaceutical Co.990 N/A 85.094.860 521.920 1.070 2. 7 Ltd.310.000) N/A 1. Ltd. 14 Chongqing Taiji Group Co.840 N/A 10 11 12 13 14 15 16 10 14 9 19 11 17 15 19 47 1 14 11 16 36 2 18 13 9 10 754.140 1.00 0) 1 Guangdong Pharmaceutical Holding Ltd....080 1. Ltd..281. Ltd. Ltd. 18 Guangxi Guilin sanjin Pharmaceutical Co. 3 Beijing Tongrentang Group Co.611..300 N/A 833.710 661. Ltd. Ltd. 17 18 19 20 3 16 31 13 31 14 44 N/A 583. 20 Hubei Wuhan Hongtao K Group Co.080 522. Ltd.440 N/A N/A 507.550 N/A 387.290 270.160 1.430 206..660 209.040 560.
000 115.880 403.000 225.010.589. the TCM exported from China can only be regarded as healthcare product and food additive instead of as medicine.000 589.000 121. All the export quota was assigned by China Medicine & Healthcare Corporation (China MEHECO).000 22. The export of other items is carried out by the subsidiaries of China MEHECO.000 466.000 457. But in the international market.000 390.960 322. healthcare product and functional food. Chinese Angelica.000 269.000 123.000 169.970.000 497.660 368.000 N/A N/A 22. Role of central government is decreasing Now China can export over 500 TCM is an important item in medicine foreign trading.360 Total value I-6.910.085 N/A Value 241.000 128.000 573.000 488.890.000 491.000 406.747 123.700 Formulated TCM Quantity N/A N/A N/A 22.1 Character of the Export of TCM in China TCM exported as healthcare product and food additive The export products of TCM include traditional medicinal materials.000 443.690.000 27.000 245.970 104.000 332.770. In the past the export of Ginseng.000 131.050.000 228.190. Less value-added products 30 .000 242.000 33.000 237.611.769.038.982. Value (USD million) ) Traditional medicinal materials Year Quantity 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 111.1.000 28.000 295. concentrated Chinese herb granule.000 261.000 418.000 520.000 296.000 383.930 427.000 135.790 185.030.I-6 Import & Export of TCM in China I-6.000 320.787 N/A Value 127. Today with the open of China to the world market the export of TCM is not controlled by the central government as tight as it was before.000 161.510. Formulated TCM. royal jelly and Panax Pseudo-ginseng is exported in name of China MEHECO.000 27.000 177.000 123.1-1 Export of TCM in the past years (Unit: Quantity (MTs).000 108.000 130.000 655.090 217.380.180. hairy deer horn.000 N/A N/A 139. species of TCM. The export of TCM was assigned and organized by central government in the past.1 Export Situation Table I-6.
This why export quantity increase but the export value decreased. There is not systematic plan for the plantation of herbs so the supply of the traditional medicinal materials is not stable. The TCM industry in Japan. which limit the export of some TCM. About 30% TCM was exported through this way.g. It is estimated that the Traditional Medicinal Materials exported to oversea accounts to about 60% of the total TCM exported. This can be explained as follows: The acceptance of Chinese medicine in Europe in 2000 makes the Western people realize the importance of the TCM thus push the western companies to develop formulate TCM or extract the active ingredient from TCM. According to some statistics the number of TCM with export amount of more than USD 100. the export of traditional medicinal materials reached to its utmost level. However it need time to fulfill the acceptance as in Europe TCM is usually regarded as a food supplement instead of medicine. which make this industry chaos. China published a paper to limit the export of the endangered species. However the export of Formulated TCM decreased in the past years. E. The exporters compete each other by lowering the export price. in 1996. This situation reflects that fact that the following drawbacks of the traditional medicinal materials industry in China: The export channel of traditional medicinal materials is diverse and complicated. By 1995. USD520 million. South Korea and Taiwan has been developing fast in the recent years. However afterward the export of traditional medicinal materials fluctuated much. The TCM that have high value or high profit only accounts for less than 20-30%.In China most of TCM are export as raw materials. There are many supervision organizations to manage the export of traditional medicinal materials. The governmental administration cannot meet the demand from international market. And the standardization of TCM in these countries/areas is more advanced than that of China. The reason why the export keep decreasing in the second half 1990s: Most trade was traded with RMB instead of USD. So these oversea companies demand more of traditional medicinal materials than before. Chinese enterprises have not exploited the market thoroughly. There was even much decrement for the export of traditional medicinal materials. tariff rebate while the tax is 3% . Some enterprises are afraid of the international market. It is hard for TCM to pass through the administration requirement in some countries. TCM belongs to Native Product in exporting and the exporter enjoy 5% 31 .000 per year is less than 45. The export in some state owned exporters decrease.. The export of traditional medicinal materials increased but the export of Formulated TCM decrease The export of traditional medicinal materials before 1995 had been increasing.
USA. Every year the export quantity/value of TCM exported to these countries accounts to about 70% of the total export quantity/value. and Taiwan. Japan and South Korea. total export of TCM. so do the Formulated TCM.2 Destination Countries Chinese TCM is exported to those Asian countries that are affected by Chinese culture. advertisement.1. Traditionally there are three major sections for TCM: Southeast Asia where Formulated TCM has been consumed for many centuries. some transited to South Korea. Hong Kong takes an important role in the popularity of TCM around the Asia and world. Thus the export of Formulated TCM has been decreased. In 2002.2% of the 32 .- The Chinese companies pay less attention to the certification on the oversea countries and put less money in packing. where demand for much traditional medicinal materials USA and Europe where consume much herb The most popular countries for TCM export include Southeast Asia. While about half the TCM to Hong Kong are transited to Taiwan. Japan. Hong Kong. etc. the amount to Asia accounts for 66. In the recent years. The TCM exported to Hong Kong accounts to about 20-30% of the total TCM exported. the export of herbal extract to North America has been increasing significantly. It is expected that the export of TCM in 2004 will be USD750-800 million. I-6.
600 97.336 14.994 1.439.544 31.60% 655.924 1.395 22.660 366.161 121.912 91.796 372.008 86.2-2 Table Export of TCM to major countries in 2000 and 2003 (unit: USD1.289 2.2-1 Export value of TCM to various continents in the past (unit: USD 1.527 44.871 4.221 248 10.951 17.170 7.Table I-6.914 8.80% 368.895 1993 325.979 9.20% 408.534.296 N/A N/A 16.398 48.343 100% 427.844 19 1.002 N/A N/A 23.422 18.798 20.599 352.557 639.695 38.683 N/A N/A 45.346 7.339 5.1.40% 1.109 57.287 153 5.810 58.532 9.640 1995 534.630 22.340 925 743 7.432 1.564 3.867 2.268 427.575.343 Table I-6.971 1.402 7.673 97.986 14.066 6.717 4.150 10.20% 389.358 N/A N/A 15.333 3.403 1.466 94.420 33 .015 2.774 3.535 46.576 95.030 1994 1.000) 2003 Country Japan Hong Kong South Korea USA Germany Taiwan Singapore Italy Malaysia Netherlands France UK Russia Total 2000 Traditional medicinal materials Formulated TCM Traditional medicinal materials Formulated TCM 80.328 2003 333.392 5.818 2.807 1.814 24.485 2.033 1992 337.928 57.049 7.205 40.297 61.854 8.032 16.1.856 3.259 1.368 4.946 3.313 41.759 631 71 227.000) Year Asia Africa South America North America Europe Oceania Sub total % Total 1991 308.520 152 262.499 N/A N/A 53.991 460 851 1.
436.487 2.101.269 1.589.975 373.951.595 7.221 155.010 5.928 6.1.060 1. Items 2003 1 2 unmilled cassia and 3 cassia flower) other botanical products gel solution and thickening agent.433 140.540 0.612 203.700 7.479 642.980 8.481.240 2.455 3.406.130 34.I-6.300 2.981 8.173.262 6.180 8.326 9.117 5.231 46.635 0.874 1.626 3.365 4.679 4.697.770 2.129 N/A 8.218 N/A N/A other Other ginseng 30.664 4.966 N/A 9.892. for pharmaceutical 4 5 bitter apricot seed 6 7 8 9 10 fresh royal jelly licorice juice and infusion fresh royal jelly powder medlar 8.3 Export of Major TCM Items in the Past Years Table I-6.050 8.100 1.419 N/A N/A 40.060 6.371.760 21.628.965.275 6.185 N/A N/A 34.100 17.300 10.380 7.160 28.990 9.540 N/A N/A 2002 N/A 2001 N/A 1.153 22.381.3-1 Export of traditional medicinal materials in the past years (Unit: Quantity (MTs).172.134 5.000 4.590 6.940 4.426.797 Quantity 2000 N/A 2.611.447 3.206.459 1997 N/A N/A 1996 N/A N/A 34 .393.734 N/A N/A N/A N/A purpose American ginseng 13.420 3. Value (USD million)) No.471.1.510 13.004 N/A N/A N/A N/A 567.458 16.310 5.580 0.466.143 694.333.120 2002 N/A 2001 N/A N/A Value 2000 N/A 15.985 1997 N/A N/A 1996 N/A N/A 2.022 N/A N/A 107.929 1.690 20.200 6.082 N/A N/A 7.920 N/A N/A 4.
891 1.185 1.996 1.196 N/A N/A 6.880.667.989.591 548.450 2.839 4.551 2.406.808.678 N/A 286.202.992.090 4.534.460 4.361.799 0.764.338.144 2.584.677.578 1.534 N/A N/A N/A N/A N/A 5.815.737 0.457 N/A 2.847 38.450.800 2.663.183 1.303 8.637 3.060 5.200 6.541 129.994 2.600 35 .780 3.260 3.110 167.894 3.400 7.310 2.904.700 1.600 2.470 1.695 3.622 3.289 2.654 3.480 5.805 2.542 1.280 3.304 2.600 1.012 2.270 4.709.038.318.226 2.380 4.300 1.720 5.535.785.440 3.260 4.110 4.762 3.730 2.163 N/A N/A 2.062.379 9.184 N/A N/A 6.754 319.441 3.027.166 N/A 5.111.507 175.000 3.167 4.999 3.140 4.114 2.380 3.685 2.780 5.860 4.010 6.600 7.200 3.522 6.572 606.435 238.chrysanthemum 11 12 Chinese anise Other plants or their parts 13 14 15 16 17 18 19 20 21 22 23 rehmannia root 24 25 26 shellac large head Tuber of Pinellia White peony root astragalus Pseudo Ginseng Chinese Angelica uses as insecticide.200 N/A 213.700 1.520.070 2.260 3.435 6.588.530 2.933 4.395.797.927 N/A N/A 6.170 4.725 4.433 2.473 8.490 5.227.230 N/A N/A or similar usage hairy deer horn and its powder tuckahoe bread) other licorice fritillary bulb Tang-shen (Indian 5.424 1.725 3.990 3.665.414 5.040 2.250 3.351.378.000 3.978.300 853.960 N/A 5.356 366.600 0.065 5.916. fungicide 6.551 730.947.003.219.380 3.870 6.100 2.000 343.062 4.820 N/A 4.583 2.774.595 N/A 3.180 N/A N/A 3.234.785.500 4.377.719 3.658 1.000 3.580 6.868 3.537 3.644 N/A 2.672.100 4.400 1.665.060 4.900 4.492.700 220.396.475 3.748.000 4.170 3.446 2.020 3.039 7.030 4.091 2.644 2.000 1.514.199 2.331 N/A N/A N/A 74.675 2.080 145.083 6.534 33.776.307.311 2.900 474.568 6.
040 1.398 N/A 1.150 1.274 Coptis Root rhizome lovage rhubarb cumin.432 3.247 2.420 0.570 1.575.098 N/A 15.560 0.412 1.030 1.010 2.850 0.580 2.660 2.071 829.429 N/A N/A N/A N/A N/A N/A 847.740 N/A eucommia bark ladybell root 1.182 2.042.317 192.057 0.233 1.922.270 1.690 0.247 N/A N/A 50.052.607.974.819 1.648 1.988 21.848 1.030 2.890 0.396 720.064 1.682.126 1.150 1.atractylodes rhizome 27 28 29 30 31 32 33 34 35 turtle baleen 36 37 beak safflower crocus other unproceeded or de-fatty bone or corner 38 39 40 41 post Tuber of Tall Gastrodia fresh ginseng maw seed 0.032.840 0.643.415 N/A N/A 111. seed Xinjiang licorice turmeric Aweto hackmatack 1.592.676 N/A N/A N/A 16.876 N/A N/A 67.600 1.053 2.900 N/A N/A 36 .020 0.259.929 21.774 1.410 N/A N/A 168. baleen.710 1.143 shell.725 0.132 303.601 1.051 66.900 1.550 0.330.582 1.945 586.800 3.725. fur.640 1.750 0.145 2.659 1.862 2.460 N/A 0.877.348.950 0.900 0.746 0.923 1.400 N/A N/A N/A N/A N/A N/A 42.093 1.528 N/A 893.900 31.883 N/A N/A N/A 171.270 5.000 0.348.580 0.800 3.984 0.350 1.600 109.570 1.114 0.800 2.270 1.929.026.780 0.119 N/A N/A N/A N/A 1.502 3.551 3.501 N/A N/A 0. claw and N/A N/A N/A N/A 13.830 1.167.132 N/A N/A 1.123 6.568 1.000 1.100 1.414 of Sichuan 1.064 0.200 N/A N/A N/A N/A N/A N/A 945. other 0.790 N/A N/A 0.447 N/A N/A 0.410 0.700 1.937.654 N/A 503.790 2.200 animal foot.200 N/A N/A 186.
738 N/A 97.550 N/A 21.022 N/A 0.050 0.945 N/A 85.060 0.090 N/A N/A 0.229 0.379 47.040 N/A N/A N/A 0.584 N/A N/A 1.080 0.001 0.064 N/A 0.127.742 N/A N/A N/A N/A N/A 0. pyrethrum bud of Chinese glands and for other scholar tree Unlisted medicine 0.024 N/A N/A 0.023 N/A 0.036 425.010 0.050 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.885 N/A N/A 0.008 1.840 37.024 0.148 0.020 N/A 0.014 0.058 N/A N/A 76.063 N/A N/A 14.949 N/A 328.000 N/A N/A N/A 44 45 46 animal products cilantro seed arte seed Juice and infusion of the stem or root of pyrethrum rotenone-containing or 0.025 N/A N/A N/A N/A N/A N/A 24.467 7.084 0.742 N/A N/A 25.014 0.026 4.500 7.080 N/A 0. myrrh.080 0.433 N/A 26.340 0.219 24.015 0.030 0.600 N/A 32.050 0. dragon’s blood Wild ginseng ( except American ginseng) coca thyme.000 0.022 N/A 0.030 0.770 N/A 82.043 N/A N/A N/A N/A N/A N/A N/A N/A N/A 20.023 N/A 0.010 0.400 N/A N/A 0.375 0.050 misiacaraway 0.009 0. laurel leaf safflower seed anise seed cardamomum 0.144 N/A N/A 1.001 N/A 35.470 438.620 24.140 0.973 N/A N/A 47 48 49 50 51 52 53 54 55 56 plant Da Hai seed lilac Frankincense.001 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.033 0.42 43 derris root.844 N/A N/A N/A N/A N/A N/A 37 .056 N/A N/A N/A 0.098.003 0.890 0.206 15.
432 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 68 69 70 scrap bird’s nest arte misia herbs and its parts used mainly as spice N/A N/A N/A N/A 0.050 N/A 73.003 N/A 72.756 N/A 1.001 10.983 N/A 115.500 0.677.570 N/A N/A 0.182 N/A N/A 0.279 6.658 0.396 N/A N/A 30.80 Total 191.454 0.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.205 50.265 38 .758 N/A N/A 0.010 0.010 0.017 N/A N/A 0.153 N/A N/A 43.985.449.403.038 N/A 0.70 39.003 N/A 0.458 N/A N/A 0.000 17.200 46.333 N/A 68.57 58 59 60 61 62 63 64 65 66 67 gharu-wood cardamomum White drug-powder cantharis gall. powder beast and 0.543 18.230 N/A 217. gland and other animal product xanthate ossein and bone proceeded with acid cummin seed other safflower seed other fresh ginseng muskiness beast tooth tooth.391 126.816 N/A N/A N/A N/A N/A N/A 71 and flavor N/A 319.241 N/A 0.284.500 N/A 0.562.060 93.520 N/A N/A 0.060 N/A N/A N/A N/A N/A N/A N/A 1.000 3.868 301.840 N/A N/A N/A N/A N/A 6.085 N/A 4.707 N/A N/A 0.612 N/A 0 N/A 0 40.768 N/A N/A 0.257.430 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.001 0.589.960 N/A 78.000 N/A 0.001 0.210 N/A N/A 130.080 0.958 N/A 20.064 N/A N/A 0.353 N/A 6.053 0.008 N/A 0.003 N/A N/A N/A 0.241 3.424 0.000 0.816 145.839 21.400 0.917 0.
869.812 31.680 51.839 3.410 8.581.660 177.090 N/A N/A 3.698.210 13.597.689.Table I-6.120 7.898.260 83.882.919 6.900 5.288 7.565 36.520 0.335.120.130 3.500 2.495 2.967 2.570 8.400 6.070 76.594 8.800 N/A 74.466.930 12.017 30.310 0.890 0.665 5.747 N/A N/A 11.480 77.982.809 1.116 1.760 33.660 10.124.700 2.740 2.830 1.810 2.628 1.484.240 9.830 3.265 5.869 3.037.141 29.100 103.890.935 32.912 N/A 22.3-2 Export of Formulated TCM in the past years (Unit: Quantity (MTs).207.787 and 9.631.590 0.619 14.260 9.868.200 3.040 4.521.1.450 16.912 N/A 16.655. Value (USD million)) Value English name Anti-flammatory analgesic bolus White drug-powder other Chinese TCM Menthocamphorate Unlisted mixed or unmixed pharmaceuticals wine of TCM Total 104.283 N/A N/A 11.387 160.244.180 10.500 N/A N/A 2.259 57.545 6.800 N/A N/A 2003 2002 2001 2000 1997 1996 2002 2001 Quantity 2000 1997 1996 39 .112 13.967 23.
I-6.2 Import Situation Table I-6.2-1 Import of TCM in the past years (Unit: Quantity (MTs); Value (USD million)) Traditional medicinal materials Year Quantity 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* N/A 96,450.000 7,940.000 10,420.000 12,740.000 N/A N/A 23,470.000 26,470.000 42,540.000 40,042.511 12,806.919 N/A Value N/A 4.000 49.000 54.000 47.000 N/A N/A 57.000 53.000 62.000 50.410 53.270 61.186 Formulated TCM Quantity N/A N/A N/A 4,880.000 3,570.000 N/A N/A 12,860.000 15,820.000 20,180.000 19,979.889 13,934.289 N/A Value N/A 8.000 16.000 15.000 11.000 N/A N/A 172.000 367.000 441.000 579.560 583.640 94.050 0.600 22.000 65.000 69.000 58.000 68.000 74.000 230.000 420.000 503.000 629.970 636.910 155.236 Total value
Note: The import value for 2003 does not include the pharmaceuticals for other unlisted mixed or unmixed pharmaceuticals so that data is rather small. I-6.2.1 Origin Countries Table I-6.2.1-1 Import value of TCM from various continents in 2003 (Unit: USD1,000) Import value % Asia Africa South America North America Europe Oceania Total 125,320 1,401 240 10,646 14,802 1,841 154,250 81% 1% 0% 7% 10% 1% 100%
Table I-6.2.1-2 Import of TCM from major countries in 2000 and 2003 (Unit: USD1,000) 2003 Traditional medicinal Country Japan Hong Kong South Korea USA Germany Taiwan Singapore Italy Malaysia Netherlands France UK Russia Total materials 1,274 19,265 1,086 7,169 7,961 N/A 737 3 N/A 365 1,087 71 104 39,122 Formulated TCM 451 88,397 N/A 0 3,047 N/A 686 N/A N/A N/A N/A N/A N/A 92,581 materials 1622 134 1317 6461 99 745 215 N/A N/A N/A 1217 118 N/A 11,928 2000 Traditional medicinal Formulated TCM 36,029 37,206 3,211 21,534 89,909 1,259 1,621 N/A N/A N/A 45,218 52,061 N/A 288,048
I-6.2.2 Import of Major TCM Items in the Past Years - Import of Traditional Medicinal Materials In 1998, among the import of traditional medicinal materials, the major origin countries are USD(10.4%), Japan (2.6%), South Korea (2.1%) and France (2.0%). The largest items are American Ginseng, accounting to 59.61% of the total import of traditional medicinal materials in 1998. - Import of Formulated TCM Before 1997, the import of Formulated TCM only accounts for 28% of the total import of TCM. However this situation changed much in the past years. Since 1997, the import of Formulated TCM increased much. By 2000 it is USD441 million, almost surpasses the total export of Formulated TCM. Among the total import of Formulated TCM, the unlisted mixed or unmixed products accounts for 94.44% of the total import. While the traditional Formulated TCM only accounts for 5.53%.
747 N/A N/A 2.423 1.344 N/A N/A 2.550 0.136 169.460 933.927 N/A N/A 373.070 N/A N/A 0.528.005 2002 2001 1. baleen fur.950 N/A N/A N/A 0.884 0. claw and 6 7 Frankincense.656 N/A N/A 331.myrrh.340 0.397 English name other botanical products gel solution and thickening agent.209.730 N/A N/A N/A 2.2.150 2003 13.002 0. 1 2 3 4 5 turtle shell.998 21.990 0.049 865. Value (USD million)) Value No.060 N/A N/A N/A 3.190 2.342 N/A N/A 5.544 N/A 57.260 1.396 N/A N/A N/A N/A N/A 1.240 1.296 1.Table I-6.180 3.380 1.058.240 herbs and its parts used mainly as spice and flavor other licorice juice and infusion 9.170 beak hairy deer horn and its powder 2.505.284 0.083 2.140 2000 2002 Quantity 2001 2000 42 .701 N/A other unproceeded or de-fatty bone or corner post other ginseng 1.770 N/A 0.140 2.387 N/A 28.433 1.2-1 Import of traditional medicinal materials in the past years (Unit: Quantity (MTs).614 1.610 1. other animal foot.720 9.742. dragon’s blood 8 9 10 Other plants or their parts uses as insecticide.880 1. fungicide or 11 12 13 similar usage lilac xanthate 1.438 3.750 16.920 1.494.930. baleen.189 N/A N/A N/A N/A 0.098 2.006 0.940 29.410 4.330 2. for pharmaceutical purpose) American ginseng 13.655 31.205.050 N/A N/A 272.
180 1.239 0.801 0.743.260 0.629 N/A N/A 0.114 1.773 43 .100 0.104.400 148.219 0.357 493.633 0.704 N/A 0.250 0.068 33.000 1.860 243.947 62.032 0.008 0.180 0.032 23.235 0.095 0.081 0.large head atractylodes rhizome 14 fritillary bulb 15 thyme.752.020 N/A 0.480 0.770 0.461 948.415 N/A 0.259 744.000 0.780 591.423 0.570 0.165 N/A 657.100 0.124 0. laurel leaf 16 tuckahoe (Indian bread) 17 bud of Chinese scholartree 18 cardamomum 19 20 21 22 23 cardamomum 24 25 26 27 bitter apricot seed Xinjiang licorice rhizome of Sichuan lovage other safflower seed Tuber of Pinellia Unlisted glands for medicine and other animal products shellac 0.955 749.320 1.970 0.000 0.390 0.160 0.170 0.765 N/A 120.492 6.590 52.512 1.390 883.128.469 N/A N/A 120.303 0.498 0.089 1.345 1.958.460 358.230 1.128 N/A 1.954.111 680.757 0.949 N/A 8.370 0.870 0.708 N/A 1.890 0.380 0.244 1.320 N/A N/A N/A 0.775 536.780 0.180 99.045 0.105 N/A 173.053 33.360 1.032 0.210 0.589 N/A N/A 14.
005 0.030 0.666 0.406 0.569 0.013 0.007 N/A 83.004 0.024 0. hackmatack seed derris root.014 8.598 28 29 30 safflower crocus 31 Da Hai seed 32 ladybell root 33 chrysanthemum 34 35 36 Juice and infusion of the stem or root of pyrethrum or 37 38 White peony root 39 40 arte misiacaraway seed 0.455 101.002 0.100 N/A N/A 0.175 76.193.028 0.029 16.000 0.129 0.000 cumin.830 0.001 665.650 N/A 4.460 480.884 1.006 0.721 10.054 0.006 0.850 N/A 2.040 0.978 0.872 N/A 0.093 0.024 0.004 0.107 0.384 N/A 44 .003 0.023 0.000 107.020 0.006 0.135 0.100 43.065 1.031 0.190 0.000 N/A 0.046 N/A 0.496 0.215 0.016 0.844 1.381 N/A 0.0.307 16.199 0.590 163.019 0.752 N/A 22.009 0.708 35.310 1.766 0. pyrethrum medlar 0.010 N/A N/A N/A rotenone-containing plant astragalus 0.153 33.011 fresh royal jelly turmeric 0.001 N/A 0.005 83.156 0.025 0.556 15.001 5.380 0.010 0.007 0.375 0.
001 0.600 0.050 0.199 8.005 N/A 0.137 1.004 N/A N/A 0.060 N/A N/A 0.304 0.161 0.000 47.864 15.092 0.234 N/A 1.002 0.003 0.152 0.002 N/A 0.278 0.040 45 .000 9.000 0.991 N/A 361.185 N/A 13.648 3.047 0.009 N/A 0.160 0.000 N/A 0.003 N/A N/A 24.560 175.562 cilantro seed rhubarb cummin seed unmilled cassia and cassia flower 0.042 743.002 7.000 0.018 N/A 0.0.022 Chinese Angelica 41 42 43 44 45 46 47 other licorice 48 49 50 51 Coptis Root 52 53 54 Aweto eucommia bark N/A N/A 0.083 2.275 N/A N/A 10.002 0.955 50.002 0.300 52.001 0.002 0.060 0.417 resh royal jelly powder Chinese anise N/A N/A 0.000 19.007 N/A 4.020 0.402 N/A 0.240 N/A N/A N/A N/A 0.187 N/A 0.200 Tang-shen Pseudo GinsengPseudo Ginseng rehmannia root N/A N/A N/A 0.000 0.500 N/A 8.003 0.500 N/A 0.013 0.949 1.003 0.008 0.350 0.020 0.000 13.005 0.629 0.
020 N/A N/A N/A 0.061 N/A N/A 0.000 1. beast tooth powder and scrap bird’s nest arte misia White drug-powder cantharis gall.087 N/A 0.Tuber of Tall Gastrodia 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 muskiness beast tooth.493 3.823 N/A 0.030 N/A N/A N/A N/A N/A N/A 0.005 0.299 0.346 N/A 0.400 1.000 0.051 0.450 N/A N/A 0.181 6.400 N/A N/A 63.001 0. gland and other animal product ossein and bone proceeded with acid other fresh ginseng fresh ginseng maw seed Wild ginseng.008 N/A N/A N/A N/A N/A N/A N/A 0.019 N/A N/A 0.002 N/A N/A N/A N/A N/A 0.310 N/A N/A N/A N/A N/A N/A 0.317 N/A 0.120 N/A 0.769 1.001 1.180 N/A N/A N/A N/A N/A N/A 1.096 46 .951 4.001 N/A N/A N/A N/A N/A N/A 0.575 0.003 N/A 0.283 0.152 0. (except American ginseng coca safflower seed anise seed gharu-wood N/A 0.950 0.065 0.930 0.850 N/A N/A N/A 5.001 N/A N/A N/A 0.029 N/A 23.381 313.004 N/A N/A N/A 0.008 N/A N/A N/A N/A N/A 0.005 N/A N/A 9.002 N/A N/A N/A 0.060 204.
412.578.664 25.Total 61.179.420 7.660 N/A 60.025.223 15.576.200 N/A 50.299 1.850 N/A 93.820 416.2-2 Import of formulated TCM in the past years (Unit: Quantity (MTs).426 N/A N/A 13.412 N/A 13.380 0.502 0.446 10.715.2.350 N/A N/A 95.186 57.730 92.219 10.050 555.856 N/A 24.176 8.510 0.272.300 1.610 18.670 N/A 494.951.445.131.375 46.729 441.399 44.510 N/A 6. Value (USD million) ) Value English name Anti-flammatory analgesic bolus White drug-powder other Chinese TCM Menthocamphorate Unlisted mixed or unmixed pharmaceuticals wine of TCM Total N/A 94.289 N/A 15.509 9.759 49.581 Table I-6.569.934.234 N/A 20.800 N/A and 2003 N/A 2002 N/A 2001 N/A 2000 N/A 2002 N/A Quantity 2001 N/A 2000 N/A 47 .
For example. thus hindering the TCM entering the international market. I-8 Some Commercial Facts of TCM Industry in China 48 . including a subsidiary of Shanghai TCM University. However. In most circumstance. the label strategy Most TCM is not well patented. But TCM is lack of scientific support in its affects. It must have direct action on patients. In fact the theory of TCM is complicated and explanation of the indication. there is a fundamental shortcoming for the popularity of TCM around world. But Chinese medicine is complicated in composition and is hard to be described clearly.I-7 TCM Entering the International Market – Difficulties & Achievement By early 2000. grasp and accept the TCM. the pharmaceutical system difference In western pharmaceutical theory. The government is assisting institutions cooperating with overseas counterparts to establish TCM academic institutions and clinic joint ventures. such as Japan and Switzerland. And Beijing TCM University is collaborating with a German partner to establish a hospital in Germany. Middlesex University in the UK and Beijing TCM University have jointly set up a TCM bachelor degree and higher research degrees in London. quality and safety. about 14 Chinese TCM producers have now passed the GMP certification conducted by the Australia and German pharmaceutical administration. So far the China-made TCM still share less market in the world. and to get TCM on the world stage. administrators and patients to understand. This is why it is hard for modern scientists. there is a series of scientific methods to ensure the medicine for its properties as safety. hindering TCM entering into the international market. only a handful of countries. Sometime. China wants more countries to do so. However. stability. The TCM theory is hard to unify with the pharmaceutical theory in the western world. medicine should have a clear constitution and a clear action. because: the explication of the TCM theory & dosage It is no doubt that TCM is a magic tool in curing the human disease and so far many TCM have been approved to be affective in the clinical therapy. so in order to protect their technology some Chinese manufactures do not label the component of TCM on the packing. This is the main obstacle to TCM entering into the international market. effectiveness and well proportion. have accepted TCM in their national health insurance systems. even around China: the expression of the TCM theory and dosage. the label on the packing is different to the actual component. This situation does not coordinate with the trading rule. function and application of TCM is too abstruse to express with modern language. the scientific evidence In the international market. old practitioners only prescribe the recipe based on their experience or even by feeling. The US has about 28 state-owned and privately owned TMC colleges.
20% 78 11.65% 487 37. The new sales formats such as executive agent.13% 45.25% 17. chain management.63% 191 1.61% 40.35% 22.48% 17. concentrating assembly. executive sales.093 2. Achievement in the Recent Years After the reform and self-modification.2 Changes in Commercial Activities of TCM Industry in China In the past the commercial activity of TCM in China had been controlled by the state-owned enterprise. This reflects the general situation of the ownership in China in the past five years.52% 2003 7. more and more state owned enterprise or collective owned enterprise have changed the ownership to stock company or other types of ownership like private owned company.60% 26. have formed in China.35% 100% 4.29% 13.56% 188 33.I-8. or even the local government.17% 15.47% 100% 100% 100% 2000 372 129 411 2001 297 108 514 2002 243 93 443 2003 2000 % 2001 9. etc. the management system has changed. Among the Chinese TCM enterprises.127 144 169 1. the ownership of TCM companies has changed much in the past two decades. But this situation changed much in the past two decades.14% 44. First some formal stock companies formed in the commercial logistic of TCM in China. many small size enterprises have been kicked out of the market.58% 2002 8. 8 of them are top 500 fortunes in China.092 149 15.1 Economic Structure of TCM Industry Ownership Switch Table I-8.57% From the above table we can see that in the past years. most Chinese TCM enterprises were state owned ones. acquisition. As stated in the previous sections. At the same time. the traditional old stores have been modified and innovated with service 49 . Some new sales system has replaced the old system that had to depend on the traditional stores. Now there are many large-scale TCM enterprises in China. But after competition.1-1 Number of ownership of Formulated TCM producers in China Number Year State owned enterprises Collective owned enterprise Stock enterprise Foreign involvement enterprise Other types of ownership Total 169 26 1.107 161 47 1. Second.19% 13. I-8.27% 14.
Trader Marts In the thousands of years of history. some distributing center developed in the last few years. a lot of distributing center of TCM has form around China. Guangzhou Qingping. . Guangxi Yulin. I-8. the famous distributing centers of TCM include: Hebei Anguo. Zhangshu. And the existing marts have been standardized.Type of Traders 50 . Baiquan. After the open of China to the world. They are: Sichuan Hehuaci. Zhengzhou Nandajie. Anhui Haozhou. Xi’an Kangfulu. In the past. Also the central government has suspended some illegal trade fairs for traditional medicinal materials.content of modern system.3 Sales Network of TCM . Nowadays the important trading and distributing marts for TCM in China include: Hebei Anguo Harbin Sankeshu Anhui Haozhou Jiangxi Zhangshu Henan Yuzhou Shaodong Lianqiao Guangxi Yulin Chengdu He Hua Chi Shaanxi Hanzhong People are free to do business in these distributing marts that take important role in balancing the supply and demand of TCM in China. Yuzhou. All these factors attribute to the switch of TCM industry from the wild & mass expending to systematic and strategically development.
like some foreign trade companies. Other miscellaneous companies and individual persons.With the open of TCM market in mid 1980s. a lot of entities have engaged in the distribution of TCM business around China. State owned TCM distributors They are distributing TCM in the areas of counties or above. The private traffic dealers These people distribute around the cities and countryside. mostly these boots are privately owned. For various reasons the state owned TCM commerce entities operate in deficit. There are fixed facilities and professional persons to engage in the purchase. distribution. Local TCM market The There are 17 TCM markets around China. In every market there are a lot of boots to deal with TCM. 51 . there are several kinds of entities to distribute TCM in China. It is estimated that the trade amount in the market is at least RMB10 billions per year. wholesales and quality security of TCM. They buy TCM from countryside and sell them to the cities. sales in these enterprises decrease in the past few years. After ten years development.
I-9 Brief Introduction to Some New Technologies in TCM Production Tradition Extraction Methods for TCM Production In the production and standardization of TCM, the bottleneck work is the extracting technology. In the past centuries, the production of TCM is narrowed in the extraction methods like steeping, decoction, diacolation, water-alcohol, etc. Hot Water Seeping Method
This is the tradition method for the extraction of active component from herbs. According to the Pharmaceutical Standard issued in 1990, there are 826 kinds of TCM using this method, accounting for about 42.5% of the total TCM. The extraction of TCM by hot water steeping method is in fact based on the experience. Thus the quality of TCM by this method is not stable and reliable. Ethanol Extraction Method
The agent/media for the extraction is ethanol. This method is used in the extraction of TCM with much impurities. But some substances that are soluble in ethanol are also extracted. That means some additional steps are needed for further separation. Physical Strengthen of Tradition Extraction Methods Ultrasonic Strengthen Technology
This method is characteristic for the high efficiency in the extraction. But so far this technology is only use din the small-scale production, or pilot production, or some sample test process. It is not a mature technology in China. Whole-Function Super-micro Extraction Technology
In this technology microwave energy technology is used to increase the extraction efficiency. It is not a mature technology in China. It is reported that Shanghai Songshan Science & Technology Co., Ltd. is promoting this technology. Modern Separation Technology Supercritical Fluid Extraction Technology
In this technology supercritical fluid is used to replace the traditional solvent in the extraction and separation of active component in TCM. This technology developed fast in the past ten years in China. It is reported that so far many domestic TCM producers have employed this technology in the extraction of some value-added ingredients. High-speed Countercurrent Chromatograph Technology
This new separation technology was developed in 1960s in USA, where no solid form carrier is employed. Super filtration Membrane Separation Technology Large Pore Adsorption Resin Separation & Purification Technology
It is reported that the utility cost of TCM production in China is 20-40% of the total cost in TCM.
Chinese people aim in the next few years is to solve these problems. The research level on TCM is low. About 700 kinds of TCM have been 54 . There are totally 170 TCM research institutes and hundreds of TCM new products development center and tens of thousand of technicians working in the TCM industry. For instance. In 1998.2 Involvement in the TCM Research Every year some large TCM enterprises receive thousands of graduates from Chinese universities. State Chinese Medicine Bureau and State Drug Administration put forward the aim of the research on TCM industry as follows: To choose some affective and stable TCM for modern research. Some products are to enter the international market To set up TCM clinical research base and to set up TCM plantation base and modern industrial production bases To set up the standard systems for TCM ensuring that the quality meets the international standard.I-10 Research & Modern Approaches to TCM I-10. the standardization is not consummate and the production scale is relatively small. According to some statistics. approved to begin commercial production. the quality of TCM is not stable. After the enforcement of The Examination and Approving Process for New Drug. The former Science and Technology Department listed The Modern Research on TCM and the Industrial Development of TCM in the top project to carry out in the Ninth-Five-Year Plan. Taiji Group in Sichuan Province hires 900 graduates and a dozen postdoctoral researchers in 1998 and has taken over the Chong Qiang Academy of TCM as its R&D center. and strengthening their R&D capabilities. China has approved over thousand new TCM drug.1 Governmental Plan for the TCM Research In as early as 1996. To increase the market share from 5% at present to 15% in the future world market. there are 29 universities and 51 primary schools of TCM that are conducting the research on TCM. To culture Chinese enterprises which are competitive in the international market. the Chinese government put the TCM project as a primary task. The government is encouraging R& D on TCM aiming to Produce new TCM products Improve the quality of existing products Improve the manufacturing standards I-10. offering attractive postdoctoral package for young researchers.
etc. maytansine. The research of Qinghaosu (Artemisinin) has opened up a new road to treat pernicious malaria. Novartis has reached a collaborative agreement with the Institute of Microbiology and Epidemiological (IME) of the Chinese Academy of Military Medical Sciences to market artemether injections. The pioneers in this field were Zhao Cheng-Gu. and hundreds of compounds have been isolated.I-10.level prizes and 482 programs won the prizes awarded by the Ministry or the SATCM. characterized and tested. Lead compounds such as artemisinine. With more than 12. In 1993. the first director (1932-1966) of Shanghai Institute of Material Medical. researchers have also got remarkable progress in the study of the implications and the therapeutic method and principle of Zheng-syndrome in TCM. and new drugs have been developed via structural modification. fast. In 1978-1993. The researches on the varieties of Chinese crude drugs provided scientific proposal for revising the national standards. Now there are many R&D projects concentrating on modifying natural products. initiated by our country. has unceasingly got breakthroughs and is keeping at the top level in the world. 127 programs of scientific research won the State. aiming to integrate it with biomedical sciences to form a common body of medical knowledge. the Formulated TCM is moving toward the direction of efficient. One of most significant examples is the development of the anti-malaria medicine artemether from studies of qinghao (artemisia annua). And fingerprint quality control method has been used in very new injection. For many years. the science and technology of TCM have got rapid development. traditional Chinese medicine provides a rich source of potential lead compounds. cardio. Chinese researchers have applied scientific methods to studies of TCM. More than 500 species of herbs have been studied using modern methods. have been identified. By means of modern scientific technology.3 Brief Introduction of the Achievement in TCM Research Since the founding of our People's Republic. of which 77 were independent units. The national general survey of herbal resources provided reliable date on the distribution and reserves of the medicinal herbs. Encouraging progress has been made in TCM treatment of tumors. agrimophol and pseudolaric acid.4 Modern Approach in the TCM Research .800 herbs. there were 170 research institutions across the country. The cultural revolution and the medical system in rural areas promoted the sue of TCM and accelerated its scientific study.cerebro. 55 . Acupuncture anesthesia.vascular diseases and hepatitis. animal extracts and minerals. It is reported that quantitatively quality control method has been used in every newly approved Formulated TCM.Quality Improvement of TCM Recent years the quality of Formulated TCM has been improved. I-10. portable and edible. whose activity has been confirmed by trial and error over thousand of years. In case of formulation type.
Multinationals and Western scientists are also interested in TCM. Their results may find applications in quality control of raw herbal materials. and researchers at China Pharmaceutical University and Zhong Shan University have started work on classifying and identifying Chinese herbs by establishing their DNA fingerprints. the efficacy of TCMs and reducing their toxicity.5 Foreign Involvement in the TCM Research Clearly the Chinese government takes TCM very seriously. Gene technology also has potential applications in increasing I-10. But modern pharmaceuticals techniques are steadily penetrating every aspect of TCM. the Chinese research on Formulated TCM focuses in the diseases of the 56 . injections. Some species already passed the FDA of USA and begin the clinical research. paracelsian and Anti-Cancer. In a recent government reshuffle the bureau for TCM was left untouched. powders. These modernized TCM products are being sold alongside chemical-based medicines in hospitals and pharmacies. Roche Bioscience cooperated with the Shanghai Institute of Organic Chemistry in identifying components of TCM and synthesizing organic compounds. Also many TCM factories passed the GMP certification. one-step granulization. Analytical techniques such as gas chromatography (GC) and high-performance liquid chromatography (HPLC) are being applied in quality control. I-10. Hong Kong Chinese University. Recently it was announced that three universities. Harvard Medical School and Beijing Medical University. scientists at Beijing Science and Technology University carried out a pilot study of production of the anti-tumor compound praclitaxel through cell culture. and several US companies. Recently. and in recent years products have emerged using pure herb extracts in modern dosage forms including covered tablets. New Technology & Equipments In terms of production equipment & technology. such new technologies have been used: multi-function extraction. pastes and pellets made from rough raw materials. capsules and even controlled delivery systems. dynamic extraction. and a number of national research centers were established alongside the existing nationwide Chinese Academy of TCM. will collaborate in TCM research sponsored by a Hong Kong-based business group. spray drying. SDA has issued about 700 certificates to new drug. TCMs are traditionally dispensed as pills. freeze-drying. are participating in TCM research with Chinese research institutes. multi-efficiency concentration.6 Summary of the Research on Formulated TCM In the past 15 years.During the ninth-five-year period. including Genelabs. Modern biological technology has also been adopted in TCM studies. etc.
throat. 170 of them are the third class new drugs and 170 of them are the fourth class new drugs. In the recent years. This means that most of the Chinese research on TCM focuses on the composite formulations and the modification of the formulations. These two types accounts for 94% of the total new drugs. I-10. From 1999-2000.7-1 New TCM drugs approved in China – by formulations No. SDA approved 361 new drugs of TCM.following areas: Internal disease: 73%. pill. respiratory system disease 13%. including digestive system disease (25%). more research have conducted to such new formulations like drop pill. etc. the majority of researches focus on the traditional formulations like syrup. Forms 1 2 3 4 5 6 7 8 9 11 capsule granule tablet oral liquid bulk pharmaceutical ointment mixture pill powder lotion 2003 82 42 30 14 8 8 7 7 7 6 5 5 4 2 2 2 1 1 3 4 1 2002 48 15 9 7 3 3 4 1 1 1 2 4 4 1 3 2 4 1 2 2001 80 47 35 18 4 4 13 9 4 5 1999 59 49 30 19 2 4 7 5 3 2 6 4 3 2 1 10 injection 12 syrup 13 suppository 14 Soft capsule 15 tincture 16 wine 17 drop pills 20 effervesce 57 . nose disease: 3% Dermatology disease: 2% Ophthalmology disease: 1% From the formulation point of view. paste. urinary system disease 4% Gynecology disease: 7% Pediatrics disease: 6% Surgery disease: 4% Orthopaedics disease: 4% Eye.7 New TCM Drugs Approved by SDA in the Past Four Years Table I-10.
21 medicinal tea 23 micro pills 24 nose drops 25 spray 26 boiling 27 buccal tablets 28 concentrated paste pill 29 Drop pills 30 Emulsion 32 eye drops 33 film 34 film coated tablet 35 gels 37 hydromel 38 inhalant 39 liniment 40 Medicinal material 41 Medicinal material (powder) 42 Oils 43 paste 44 plaster 45 releasing tablet 46 Rubber ointment 47 Sachet medicinal tea 48 spray powder 49 Surgery ointment 50 vaginalperfusate 51 water paste pill Total 1 1 1 1 2 1 1 1 2 1 1 2 1 2 2 1 1 2 8 6 3 1 1 1 1 1 2 1 1 1 1 252 225 1 2 1 1 1 1 1 237 110 Table I-10.7-2 New TCM drugs approved in China – by classifications Year Fifth class Fourth class + fifth class Fourth class Third class Second class First class 1999 2001 2002 3 6 4 3 1 2 102 98 47 97 135 49 4 9 8 16 3 Total 225 252 110 58 .
In the past.g. The famous foreign-brand TCM are: Qiangli brand lion oil American ginseng pill/tablet Red ginseng tablet/powder Safflower oil Oil expelling pathogenic wind Etc. So far they have invested RMB10 million in the advertisement in southern China. in Chinese market with high price. Now in the market. some German companies bought ginkgo leaf from China and extract ginkgo biloba back to China. the foreign-brand TCM has shared considerate market in China. there are typical oversea brands. decides to focus on the China market in the future. 75% of the raw materials for these Formulated TCM are from China. Huashi Drug Store and Leiyunshang Drug Store) who are also selling the natural pharma from Germany. the number of oversea natural drug is no more than 20 species.g. Those small in number (3% of the total number of Formulated TCM in China). According to the investigation to three major pharmacy stores in Shanghai (Shanghai No. And. Dr. E. after changing the packing or making into Formulated TCM. In the recent two years (since 2000).5 million to CAS Shanghai Pharmaceutical Research Institute to screen the new compounds for pharmaceutical. 147 of them are made on base of the Chinese traditional recipe. The same is pacletaxol. E. By 2002. Mars of Germany who is specialized in the natural herbal medicine. there are ginkgo biloba preparation made from Germany and France.I-11 Involvement of Foreign-Brand TCM in China Contrary to the weak sales of Chinese-brand TCM. Another example is that Norvatis of Swiss invested USD4. what is more. E. the Japanese government approved 210 kinds of Formulated TCM in Japan. The major species are: Ginkgo biloba preparation from Germany and France Lijialong for hepatitis Shulitong for coprostasis Jiuxinda and Zhengluwan from Japan The comment from the Shanghai pharmacy stores shows that the market share of oversea brand 59 . more and more famous foreign companies entered the Chinese market.1 Drug Store. it is estimated that these Japan-made Formulated TCM share about 70% Formulated TCM market around the world. some oversea companies purchased large quantity of cheap traditional medicinal materials from China and resell it. France and Japan.g. It is reported that there had been 40 natural pharmaceutical registered in China by 2001. by end 1990s.
. Z2003001 60 . 5mL/bottle Manufacturers He Xing Bai Hua You Co. 1 2 3 4 5 6 7 8 9 10 11 12 13 Drug name He Xing Bai Hua You He Xing Bai Hua You He Xing Bai Hua You He Xing Bai Hua You Lingnan Wan Ying Zhi Tong Gao Lingnan Wan Ying Zhi Tong Gao Lingnan Wan Ying Zhi Tong Gao Huo Luo You Huo Luo You Bao Ying Dan Golden Bai Feng Wan Huo Xue Feng Shi Gao Hia Gou Wan Paste.34/bottle Pill Oinent. 2. Ltd..of TCM in China accounts for no more than 1%. Yu Ren Sheng (Hong Kong) Co. Ltd. (Hong Kong) He Xing Bai Hua You Co. CZ20030001 N/A N/A BZC20000020 BZC20000019 Z2003012 Z2003011 Z2003010 Z2003004 Z2003003 Z2003002 Register No.. Ltd. (Hong Kong) He Xing Bai Hua You Co. 70mL Oil. The price for Jiu Xin Da (a kind of drug for heart attach) from Japan is RMB131/20 pieces. Ltd. 20mL/bottle Oil..55mL/bottle Oinent. Ltd... However we believe that more and more foreign products will be accepted by the Chinese people in the future. Ltd... Lingnan Pharmaceutical (Hong Kong) Co. 10mL/bottle Specifications Oil. Ltd..g. 5mL Oil. 20mL Oinent. Desheng Pharmaceutical Co. Yu Ren Sheng (Hong Kong) Co. (Hong Kong) He Xing Bai Hua You Co. 0... 50mL/bottle Powder. Ltd. 0. Hong Kong Huang Dao Yi Pharmaceutical Co. (Hong Kong) Lingnan Pharmaceutical (Hong Kong) Co. E.3 g Oil. Ltd. 25mL/bottle Oil. Hong Kong Huang Dao Yi Pharmaceutical Co. The major disadvantage for the oversea brand is that its price is much higher than that of domestic made TCM. Ltd.. Ltd. Lingnan Pharmaceutical (Hong Kong) Co. (Taiwan) Jingdu Yang Sheng Tang N/A Pharmaceutical Co. Here are the major oversea brands of TCM drugs approved by SDA in 2003 Table I-11-1 Approved oversea new drugs in 2003 No. Ltd. while for domestic made product it is only RMB12/20pieces. Some is even 10 times that of the domestic brands.. 10cm x 15 cm Water pill. Ltd.
At the same time. etc. China is determining to develop a kind of scientific research rule which accordance with the international standard and suitable for the development of Chinese medicine. quality control. 61 . new auxiliary. B: Plan for Tenth-Five-Year Period (2001-2005) Principle Target for the TCM Development in the Tenth-Five-Year Period The annual increment of industrial value for TCM industry will be 15%. Product Target To screen 20 qualified Formulated TCM with clear therapy mechanism. active part of TCM. new preparation. The sales of Formulated TCM will be RMB80 billion per year. 1) The research on the database of standard TCM China has finished the quality research on 220 kinds of often-used TCM during the Seventh-Five-Year and the Eighth-Five-Year. to ascertain the active component. It is reported that China will culture 20 modern Formulated TCM within 5 years.I-12 National Plan for TCM Industry A: Plan for Ninth-Five-Year Period (1996-2000) The Chinese government will focus on the following sides of TCM during the Ninth-Five-Year. stability. 3) The research on the refined granule of TCM. action. controllable. new product and the research on the TCM biological technology. China will formulate research rule of refined granule of TCM in the Ninth-Five-Year. 2) The research on the standardization method for Formulated TCM China will choose 5 TCM composites which have definite action. clinical equivalence. new equipment. new technique. large social demand. And China determine to share 15% of world herbal market. on their quality standard. China will research on 71 kinds of TCM. relatively simple constitute and modern characteristic. to set up database of standard TCM. and other good specifications like safety. equality. During the Ninth-Five-Year. safety and clinical evaluation. production technology. China will put one or two excellent TCM composite to enter the international market. 2-3 Formulated TCM will enter the international market. 6) The research on new technology. The percentage of Formulated TCM among the total TCM exported will increase. effective. to start systematic research on the quality control of raw materials. in order to set up the measuring method and differentiating method. stable. 4) The research on the preservation of raw source and on the multiple utilization of resource. This task is to be finish via researching on the mounting technique. easy usability. preparation technique. 5) The research on the TCM production technology and product quality.
Excessive exploitation. At the same time. and to make further research on the processing technology and the quality of concentrated Chinese herb granule. collection. modern biological technology is recommended for the screening of the good seeds. At the same time. to set up R & D center and the investment of R & D will be 5% of the total sales value. better protection and utilization of licorice. especially in the major production areas of traditional medicinal materials by introducing the advanced plantation technology and biotechnology.Technology Target To form technology innovation system in each enterprise. The fingerprint technology for the quality control of Formulated TCM should be promoted. At the same time. In the western area. processing technology. Thirdly the enterprises of Formulated TCM are encouraged to set up traditional medicinal 62 . should be prohibited. C: Development Focus of TCM Industry in the Tenth-Five-Year Period The development of TCM Industry in the Tenth-Five-Year Period will focus on the following sections: Establishment and Consummation of Quality Standard System First to improve the quality standard system for traditional medicinal materials. Target for Enterprise To culture 5 large enterprises with annual sales value of RMB 3 billion. Thirdly to enhance and consummate the standard for Formulated TCM by reference to the oversea experience in the development of natural pharma. ephedra is important. Secondly to consummate the processing standard for concentrated Chinese herb granule. For some large-scale enterprise. home-breeding and substitutes. The central government will support the construction of seed gene database. digging. More research will be conducted toward it. Promotion of the Industrialization of Traditional Medicinal Materials Firstly to promote the standardization and industrialization of the plantation of traditional medicinal materials. more practical activities should be conducted to help the local peasants for their market information and forecast ability so that to lessen the possibility of blindness plantation. so that to improve the quality of the traditional medicinal materials. Secondly to protect the wild medicine resources by introducing the home seeding. the standard should be formulated and executed for herb plantation. especially on the research of metal content and agrochemical residue. 10-15 large enterprises with annual sales value of 1 billion. At last to establish the national standard for concentrated Chinese herb granule. collection etc.
accurate and fast evaluation method and index system for the effective component. The development plan will focus on the following areas: first class new drugs and second-class development with Chinese intelligence property. At last to fasten the reform on the forms of the Formulated TCM by referring to the success of chemical synthetic pharmaceuticals. Improve the Management on Concentrated Chinese Herb Granule and Enhance the Quality of it To find out the new management mode for concentrated Chinese herb granule. the enterprises are encouraged to unite with the traditional medicinal materials production base so that the production of the concentrated granular will move forward to the mass production and enter the international market. SDA launched the plan to develop new TCM in China. especially in the field of technology innovation. Fourthly China central government encourages the industrialization of herbal extraction. The programs of the research were chosen based on the submitted proposals from local government. The traditional drug with definite actions. the advanced technologies such as soakage and drying. by inheriting the ancient technology. D: Some National Plans In June 2002. there are 70 projects listed in the new drug development plan in the TCM industry. On base of the traditional concentrated Chinese herb granule. The new form of Formulated TCM that can best perform the function of the TCM will be developed. Encouragement on Formulated TCM Industry First to set up effective. the new types of concentrated Chinese herb granule should be developed. The recipe of these drugs are usually describe by the famous and old doctors in the ancient time. micro pills.materials base or even set up the first workshop in the production area of traditional medicinal materials. At the same time. combining the modern technology and referring the international experience on natural pharma. drop pills. especially for such preparations as coating for TCM. 63 . The process and quality control should be standard and the test should be modern. Thirdly to development new Formulated TCM to supplement the supply shortage of modern pharmaceuticals. Second to fasten the secondary research and development on the existing good TCM products. After serious screening. The development on advanced technology and new exipients are encouraged. On base of the existing concentrate granular technology. standardization and mass production. etc.
- The formulations that are described and processed within some famous TCM schools in China. 10 TCM R & D centers. State Economic & Trade Committee issued The Development Compendium for TCM in the Future. each with annual sales value of RMB5 billion. 20 engineering centers and 10 industrial bases for TCM production. In Nov. To formulate and consummate the standard of TCM in China. To develop new drugs with definite functions 64 . each with annual sales value of RMB 3 billion. And there will be 10 large TCM enterprises. The secondary development & exploitation of the famous and traditional drugs. there will be 5 large TCM enterprises. by 2010. The four development strategies include: To set up new systems for modern TCM in China To establish 2-3 state level TCM research labs. According to this plan. 2002.
I-13 Future Trend of TCM Industry in China Accompanying the development of society and the improvement of living standard of human beings worldwide is the fundamental changes in the attack of diseases like cardiovascular disease, malignancy, spiritual disease, aged disease, etc. These diseases can be effective prevented but are difficult in the therapy. This forces the medical mode changes from therapy style to prevention style or prevention + therapy style. However it needs long time, energy, capital and adventure for the development of the traditional medicines by chemical synthetic pathway. So this forces the human being to move their eye to the natural pharmaceuticals like TCM. In fact the sales value of natural pharmaceutical by end 1990s already reaches USD16 billion and it is still increasing at the speed of 10% per annum. It is under this circumstance that many big pharmaceutical companies in the world would like to approach the TCM industry by making good use of their professional advantage in both intelligence and the technology, and to develop value-added natural pharmaceuticals. During the ninth-five-year period, the TCM industry in China developed at the increment of 20% per annum. It is expected that the increment rate in the tenth-five-year period (2001-2005) will be 15% per annum. There are some assumptions for the fast development of TCM in China: The living standard of Chinese people is improving. E.g. the present average consumption of medicine in China is USD10/year per capita. This is far smaller than that of developed countries (USD300/year/capita). As most chemical synthetic medicines have been patented in China, meaning that it is expensive for Chinese people. Comparatively that TCM is much cheaper and is affordable to most Chinese family. More people will realize the importance of keeping a good health, thus will demand much TCM and increase its market share among the healthcare products. The modern technology will definitely improve the quality and therapy of TCM and increase its market demand. The Chinese entrance into WTO will no wonder popularize the TCM in the world market. With the popularity of TCM around world, more and more people will realize the dramatic function of TCM and will accept it as effective medicine. In addition the purchase of TCM from some less-developed countries will increase. These factors means the great demand for TCM in the future years. The future trend of TCM industry will focus on the following sections: the demand from the Chinese market is increasing the demand from countryside is bigger than that of from cities the Traditional Medicinal Materials is short supply while the Formulated TCM is oversupply
the acceptance of TCM in world market will increase Recent years the plantation area for Traditional Medicinal Materials is decreasing. The
production of some types of TCM is smaller as in the past especially those wild plant source. From another side, the herb extract industry is growing fast in the past few years, which consumed large amount of Traditional Medicinal Materials. Formulated TCM is plentiful. By comparison the supply of
Appendix II-1 Brief Introduction to the TCM Industry in Some Important Provinces . . has started up the research on the standard plantation of amount fruit. eucommia bark. grifola umbellata. So the local government develop a mode of “company + production base + peasant” for the plantation of traditional medicinal materials. etc. Now Sichuan has set up 37 plantation bases for 30 species of traditional medicinal materials. Tuber of Tall Gastrodia. cardamomum Wenshan: Sanxi Chuxiong: tuckahoe (Indian bread) Lijiang and Dali: Chinese Angelica. yew. rhubarb vine. Sichuan province started up the plantation bases for the TMC. Sichuan province also conduct research on the standard plantation of 30 species of traditional medicinal materials.600 kinds of traditional medicinal materials. yew. So far they are success in the plantation of Tuber of Tall Gastrodia.Yunnan Yunnan province is famous for its vast resource of natural herbal.Guangdong Province Guangdong province. Their aim is to reduce the reliance on the natural resource and develop the plantation mode for the traditional medicinal materials production. polyphylla rhizome paridis. Danggui. Coptis Root .II. lamp flower. They also draft GAP standard for Danshen. During the ten-five-year period. In as early as 1980s. while the plantation area and the output of eucommia bark. grifola umbellataaccount for 50% of the total figure in China.And they have finished the draft of GAP oncordate houttuynia. muskiness. large head atractylodes rhizome. dwarf lilyturf tuber. The major areas for the traditional medicinal materials are Hanzhong area where there are about 1. It is reported that the output of Tuber of Tall Gastrodiain Shaanxi Hanzhong accounts for 60% of the total output in China. bitter galingal. rhizome of Sichuan lovage. There are three large plantation bases of traditional medicinal materials in Yunnan province: Xishuangbana and Dehong: focus on amomun fruit. 67 . The famous herbs are: Tuber of Tall Gastrodia. Guangdong province has successfully cooperated with some universities and research institutes to set up the GAP industrial base for common andrographis. In addition to the research on GAP plantation. Asiatic cornelian cherry fruit. Etc. Cantonese fingered citron.Shaanxi Shaanxi has plentiful herb resource. . rosa banksiae Shaotong: Tuber of Tall Gastrodia . dragon blood. bear gall. which are based on the 8 supporting items. Now Shaanxi Hanzhong is the plantation base of traditional medicinal materials in Shaanxi province.Sichuan Sichuan province has plentiful nature resources for TCM.
The Miaoyao is the famous native medicine in Guizhou area. Tuber of Pinellia.600 individual families living on this business.Jiangsu Now there are 120 new drug (TCM) licenses in Jiangsu province.. topaz. there are many large TCM enterprises in Zhejiang province like Zhejiang Chiatai Qingchunbao Pharmaceutical Group. tuber fleeceflower. Shaanxi province will invest RMB50 million/year at least in the development of TCM industry. The output of these four items accounts for 80%. astragalus. and Zhejiang Kangenbei Pharmaceutical Co. . So far there are over 1. Jiangsu Yangzijiang Pharmaceutical Co. Ltd. eucommia bark. 25%. In the next ten years. The annual output of traditional medicinal materials in Hebei Anguo is 30. .100 mills to process the traditional medicinal materials and there are 8. boiling.白术 large head atractylodes rhizome. By 2001. including Jiangsu Shanhe.Zhejiang The famous traditional medicinal materials in Zhejiang province include fritillary bulb.Guizhou Guizhou has profound resources of herbs. dahurian angelica root and Danshen root.000MTs. The major species of traditional medicinal materials include Tuber of Tall Gastrodia.. . radix asparagi. cassia twig tuckahoe (Indian bread)capsule.300 hectare plantation base of ephedra. Ankang and Shangluo. . The major items in Hebei Anguo are ladybell root. ladybell root.Inner Mongolia Inner Mongolia is famous for the ephedra and licorice resource. chrysanthemum. Amongst the TCM producers. The famous Miaoyao include epimedium herb.. etc.700 hectares. Now Ningxia province is building the 1. 10% and 10%. respectively of the total output in China. evodia fruit. In addition. including Mai Luo Ning injection. phellodendron bark.Ningxia Ningxia is famous for it ephedra and medlar. Jiangsu Suzhong. Guizhou province will support five production 68 .Hebei The main areas of traditional medicinal materials in Hebei province is Anguo city. corydalis tuber. There are 12 big TCM items with annual sales value of over RMB50 million. Jiangsu Kangyuan. . ginkgo biloba leaf. In the modern research approach. dendrobium stem. Zhejiang Huqing Yutang Pharmaceutical Co. as well as on the cassia twig tuckahoe (Indian bread)capsule.In the next five years. . accounting for 70% of the total output in Hebei province.. Ltd. 8 of the TCM enterprise have annual sale value of over RMB200 million. is the largest one with annual sales value of over RMB2 billion. the number of plantation TCM in Hebei Anguo is 223 and the plantation area is 8. polygonum capilalum. Jiangsu take major role in the research on standard plantation of ginkgo biloba. Ltd.chrysanthemum. And they will set up three major production bases of TCM in Hanzhong.
Guizhou Yibai.Anhui There are 2. eucommia bark. Guizhou Xinbang. Anhui province will: set up 3-5 TCM engineering center by 2010 develop 5 new TCM drug with intellectual property form 203 large enterprise with sales revenue of 300 million per year. Among the 363 important traditional medicinal materials in China. each with plantation areas of 1.sea snake. The famous traditional medicinal materials species include hairy deerhorn.508 species of traditional medicinal materials in Anhui province. Guilin Sanjin Pharma. . The famous species are eucommia bark. There are 34 TCM enterprises in Hunan province. Guizhou Yikang. The major traditional medicinal materials are White peony root. Guixi Pharma and Wuzhou Pharma. oyster. The famous TCM enterprises in Guizhou include Guizhou Shenqi. coral.bezoar.000 hectares.bases of traditional medicinal materials..300 hectares at least. abalone shell.000 hectares. clamshell. chrysanthemum. phellodendron bark. bird’s nest.Guangxi The plan for TCM development in Guangxi province for the year 2004-1010 are as follows: to set up one base for breeding of good species on base of standard process for traditional medicinal materials to set up one TCM engineering research center to encourage 10 TCM enterprises to set up 10 plantation bases with GAP standard. hawksbill. large head atractylodes rhizome. 69 . Now the big industrial chains are Tuber of Tall Gastrodia. The total reservation of traditional medicinal materials in Hunan province is 12 million MTs. pawpaw. .. The industrial revenues of TCM industry by 2005 and 2010 will reach RMB6 billion and RMB15 billion. The total plantation area is over 100.seahorse. . Ltd. a category of traditional medicinal materials grown in southern China.110 kinds of herbs in Hainan province. . amber. 241kinds of them can be found in Hunan province. The famous TCM enterprise in Guangxi province include Guilin Jiqi Pharmaceutical Co. polygonum capilalum. . sea pumpkin.Hunan There are 2. seadragon. pearl.Hainan Hainan province is an important production base of Nanyao. The plantation area of traditional medicinal materials is 34. According to the plan for 2010. It is reported that there are 3. pangolin.384 kinds of traditional medicinal materials in Hunan province.
There are six big traditional medicinal materials plantation bases in Chongqing city which are built by the following enterprises: . Now many famous TCM enterprises have set up GAP plantation bases in Jilin province. asarumasarum. frog oil. The present plantation areas of traditional medicinal materials in Jilin province is 33. The major items of traditional medicinal materials are (2. .116 species of traditional medicinal materials in Shanxin province.790 species of traditional medicinal materials around Changbaishan area.Jilin There are 2. Taijin Group: Taiji Group Tuber of Pinellia production base Shizhu Coptis Root Company Coptis Root production base Sanxia Muye Group Isatis root production Hechuan pueraria root production base Huali Holding Group southernwood production base Sainuo Pharma yew production base 70 . The major items are ginseng. The output value of traditional medicinal materials in Jilin is RMB1.500MTs/year) and Tang-shen(3.000MTs/year)..Chongqing By 2002. The total reservation is 188. hairy deer horn. the plantation area in Chongqing city is 260. rough gentian.8 billion.000 hectares. acanthopanax root.Shanxi There are 1.000 hectares.000MTs.
Peach kernel Production has been shrinking in the major output area due to various reasons. The annual output is 20. Danshen The annual plantation area of Danshen is 60. present. Cowherb seed Not large supply but it seems that the application areas have been enlarged.500MTs/year. It is oversupply in China. Fritillary bulb Too much plantation and enough supply in the market. Balloon root The demand and supply is equal. However it seems that the plantation licorice is a good item in China.000-30. Dahurian angelica root It is one of the largest traditional medicinal materials items in China. Lily Too much plantation it the past years. The production scale is enlarging. Business is not clear for the next years. Figwort Total demand in China is 4.000 hectares. The major plantation areas 71 . However its price has been high recent years. Tuber of Pinellia Shengdi Plantation areas has been decreasing in the recent years however there are much stock at It can be planted in various land.000MTs.II-2 Brief Introduction to Some Important Species of Traditional Medicinal Materials Here some promising Traditional Medicinal Materials Licorice It is a large item of traditional medicinal materials in China with quite large quantity of export each year.000MTs. The annual supply quantity is about 3. But Recent years it is not allowed to collect the wild licorice and it needs license to the do business of licorice in China. Anemarrhena rhizome Not a good item but with enough supply.
000MT/year.000 years ago. The major plantation area is Zhejiang province.000MTs per year. The annual output is about 10. There are 46 kinds of ginkgo biloba species in China. Common fennel The plantation area in China is 4. Shaanxi Hanzhong. So the price is not stable either. The output of ginkgo nut is 12.000 hectares at present. Ginkgo Biloba The Chinese people plants ginkgo biloba 4. Chrysanthemum The demand in China for this traditional medicinal materials is 1. The output of dahurian angelica root in Sichuan is 3. etc. The ginkgo nut production in Jiangsu province is the largest in China. Inner Mongolia. In China. Gansu.000 MT. The total plantation area of ginkgo biloba in China is around 200.500-1. The major plantation areas are Shanxi. accounting for 90% of the total production in the world. 72 .include Sichuan and Anhui. Large head atractylodes rhizome The annual output of 白术 large head atractylodes rhizome is 14. Shandong Province. The biggest seed raising base in China is located in Shandong Laizhou. accounting to about 90% of the world production. The annual plantation area is 8.800MTs. Ningxia. The quality of Sichuan dahurian angelica root is better than that of in Anhui.000MTs. As it is available in the wild climate. the output is subject to the climate and is not stable. Henan Province and Zhejiang Province.000MTs.200 hectares in China. ginkgo plant distributes mainly in Jiangsu Province. The total production of ginkgo Leaves in China is estimated at over20.000-4.000 hectares.
Should additional areas of interest have been revealed to xxxx following this report. we would of course be happy to discuss these with you for follow up work. If readers are interested in specific sections or specific products.Recommendation and Suggestion for the Future Works No doubt TCM industry is really a large topic and it is impossible to uncover all of them in this present report. please put up with your details requirement so that CCM will devote all its energy and intelligence to help the reader to reach the target. past. present and future. 73 . This report is only a general market survey aiming to illustrate what is TCM industry.
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