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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 annual export of TMM is around 150. 4 . China shares much less market in the international market comaparing with Japan and South Korea. including 11. Traditional Medicinal Materials (TMM) China is profound in TMM resources. However China lacks of efficient system to ensure the TMM availability continuability and to ensure the product quality.581 species of medical animals and 80 medical minerals. the three most important sections are screening & planting of traditional medicinal materials. Chinese research and modern approaches to formulated TCM is governmental encourage and is aggressive. description. processing of concentrated Chinese herb granule and research on Formulated TCM. etc. Now they are developing new types like drop pill and injection. Formulated TCM China has long history in the production.000~200. application and promotion of formulated TCM. test.146 species of medical plants.000MTs. The export of Chinese formulated TCM has been maintaining at the level of 40. There are total about 12. More Chinese large TCM companies are conducting GAP program to ensure the TMM availability. And central government encourages the plantation of TMM. The annual output of formulated TCM is 150. The annual output of TMM is around 400. China is strong in the export of TMM just because of the low price. Althought China is the origin country for formulated TCM. 1.000MTs.000MTs. The major reason is that China lacks of standard system to ensure the production.807 TCM species in China.Executive Summary In the TCM industry. China has been producing over 40 forms of formulated TCM. The formulated TCM has rooted to the Chinese people as a convenient and cheap way in the actual therapy.000MTs/year. However there is a long way to go for Chinese formulated TCM to have competitive position in the world market.
26 RMB 5 . to make medicine and sell in form of pill. In recent years. In fact the herbal extract should not belong to TCM. like drying under sunshine. Herbal Extract In the recent years. concentrated Chinese herb granule. The information of this report is dated to August 2004. for directly intake or eat with water. from such aspects as production. etc. more and more Chinese factories began to extract active ingredients from the traditional medicinal materials or some natural herbs by using the western technology.Traditional Medicinal Materials Natural resources. traditional medicinal materials. Note: 1 USD = 8. we discuss it within the Formulated TCM sector. government statistics. journals. It is made from traditional Medicinal materials.Formulated TCM It is the medicine that people around the world have been referring to for centuries. The aim of this report is to provide basic understanding on the traditional Chinese medicine. fabricated under simple physical condition without further processing. However we include the information of this sector for reference and comparison.. In the present report. . 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. especially herbs. etc. a kind of Formulated TCM without boiling and usually for instant intake. Internet. which is processed by boiling. the Chinese manufacturers have developed the concentrated Chinese herb granule. grows in Chinese territory. raw materials. consumption. and sold thereafter. with certain function in treating disease. export. technology. Consecutive market monitoring on the situation of traditional Chinese medicine has been conducted from 1997 to 2004. customs statistics. Throughout this report we discuss the TCM industry in the following sections: Traditional Medicinal Materials (TMM) Formulated TCM or patented TCM Herbal extract Glossary . powder. so that to understand the competitiveness of Chinese TCM industry. extraction.Methodology The sources of this report are various. They include published magazines. industrial statistics. tincture. etc.
radix platycodi. There is no chemical method to extract the active parts. The China government put a lot of capital and effort in developing and exploiting this thesaurus. the TCM production in China is characteristic for the family-mode. and promotion around the small villages. The mass commercial production of TCM began after the foundation of Peoples’ Republic of China. tall gastrodia. boiling & processing. All the function and recipe is described on base of the past experience of folk healers or practioners. Chinese researchers have put effort to introduce the plantation technology of traditional medicinal materials. corydalis tuber. 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. including education & training support. especially in the 1980s and 1990s. There is no quantitative data in evaluating the affect and result of TCM.I-1 Brief Introduction to TCM Industry in China I-1. In the past centuries. mostly for water boiling. marine good.000 years to the age of Sheng Nong. In fact they have conducted all the procedures from herbal collection. saffrom crocus. Chinese agelica. Chinese globeflower. So far there are still tens of thousand of families around countries in China living on the technique inherited from their ancients. poeny. coptis root.500 years. and the extracts from these products. it also covers animals. grifolla umbelata has been applied in the commercial production. These herbs are called traditional Chinese medicine (TCM). storage. licorice. astragali. safflower. American ginseng. honeysuckle flower. Some of these TCM has 6 . research support. All herbs used to make TCM grow under nature climate. and archeological discoveries suggest the origins of TCM may stretch back at least 5. Dan Shen. thunberg Fritillary. ginseng. or the research on TCM. The earliest written records of TCM date back 3.1 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. Any separate element will lost function if it is excluded from other elements in the TCM. They successively solved the problem of culturing technology for such herbs as coptis root. the TCM is characteristic for the following facts: There was almost no systematic plantation of herbs. lycium. Prior to twenty century. In the past there is no organization to engage to the mass production. Later the plantation technology of tall gastrodia. Nowadays the scope of TCM not only limited to herbs. lactiflora peony root. glutinous rehmmania. Chinese people treat herbs with simple process. medicinal evodia. radix glahniae. American ginseng. eucommia bark. All the activities on TCM were carried out by unorganized civilians. Chinese people hold the idea that the action of TCM is composed of several elements within TCM. honeysuckle flower. which cure the disease in a synergetic way. For a long time in the history. mass commercial production involvement and long term plan design. etc. Since 1960s.
It can be said that SARS in China reactivated the Chinese market of TCM. under the encouragement from local government. Following the price roar up since March 2003 (The price of some species like hurricane lamp. has got FDA clearance for clinical trails. honeysuckle flowers is even ten times that of before). the amount of households specialized in the production of TMM is over 340. with a total planting area of over 348. Following the development of rural side. However in 2003. the business of TCM grows gradually and stably. over-the-counter (OTC) medicines and new drug applications.. dietary supplements. Food and Drug Administration of USA (FDA) allowed herbal products to be promoted in the USA as health food. Some factories and workshops have come up to the GMP standards. 21 Chinese-made herb products received US marketing clearance as food supplements. In the 1990s. It is only since mid 1990s that the TCM industry began to go up. In the early 1990s. In 1997. there was a rush wave in China to plant traditional medicinal materials. The weak traditional medicinal materials industry lasted till 1995. At present. The TCM industry increased in both production quantity and species number. In the same year.000MTs. 124 TCM pharmaceutical factories have been recognized as big.000 farms specialized in production of traditional medicinal materials (TMM).or middle-size state enterprises. Many peasants suffered a lot from the herb plantation and lost confidence.000 hectares. It is reported that many of the TCM stocks had been sold out overnight. 900 million and the production output is 200. Some large enterprises were set up. As a result. From the investigation on the 17 major trade marts in China. Later another product. the Chinese manufacturers began to introduce new and update technology from western & developed countries. During 1980s. there are over 800 TCM plants and 13. In the same time. There are 500 kinds of medicines in over 40 different drug forms. the FDA approved the first complex formula TCM product.line production and diversified economy. ginkgo extract from Shanghai. The business of traditional medicinal materials increased significantly. herbal supplements. In December 1997. 7 . the total sales of traditional medicinal materials in 2003 increases 25-48% over that of 2002. the TCM industry formed in China. for clinical trial application in cardiovascular disease. including the chemical extraction method to make single compound medicine. more and more TCM have been exported to overseas and have been accepted by the foreign people. The annual total output value is RMB13. But subsequence to this rush plantation wave is the dramatic drop of the price of traditional medicinal materials. went into the TCM plantation business.become the main income for the local government and the local people. the SARS sweep in China arose the attention to the TCM. Compound Salvia Drop Pill made by Tianjin Tasly Pharm Group.000. 1 For a long time in the history. basket fern. more and more Chinese peasants.
571.000) 2002 56% 26% 8% 0% 504.500 19.370 1.070 1.41 2001 122.733.519.250 14.96 290.840 919.896.350 3% 100.616.520. 8 .302.330 21.490 297.003.100 9.210 22.010 9.962.470 % 2000 % 2001 % 2002 % 2003 56% 51% 46% 52% 34% 31% 35% 30% 0% 9% 8% 9% 4% 2% 2% 0% 1.17 0 0 100% 100% 2.462.560 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.548.830 1.890 52.570 1.510 38.1-1 Position of TCM industry in the whole pharmaceutical industry in China Pharmac Industry Chemical s .280 4.830 5.471.850 1% 100% 7.190.30 0 7.675.420 132.162.440 5.Traditional Other Biopharm pharmace Sanitary aceuticals uticals 10.770 385.740 2% 2% 7% 8% 0 0% 0% materials Medical appliance eutical machiner ies Total 212.890.870 2003 14.810 32.233.490 2.490 24.330 75.840.760.450 14.040.230 26.014.640 7.30 0 5% 5% 3% 3% 18.104.22.168.920 % 2001 % 2002 58% 53% 25% 28% 0 5.912.887.010 69.082.620 18.170 987.840 660.956.410 273.060.Table I-1.87 Section pharmaceuti Chinese cal industry medicine % 2003 2000 2001 Profit (RMB 1.400 8.550 7% 815.023.100 233.99 0 245.610 17.944.940 12.620 2002 129.478.510 5.803.377.000) 2003 163.576.337.646.335.870 Sales revenu e (RMB 1.482.
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.
fritillary bulb. herb of virgate wormwood. ladybell root. plantain seed honeysuckle flower. mongolian snake gourd common yam rhizome.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. broomrape rhizome of Sichuan lovage. homalomena rhizome. rose flower Danshen root Table I-2. asafetida. morinda root. Tuber of Tall Gastrodia. achyranthes root. Isatis root gardenia. arge head atractylodes rhizome. prepared aconite root. Tuber of Pinellia .川乌 prepared Sichuan aconite root. hog fennel root. tsaoko cardamon. muskiness licorice.dwarf lily turf tuber. notoperygium root alkanna tinctoria. rosa banksiae. safflower. common andrographis Sanchi. patchouli. coix seed peony. chrysanthemum. dahurian angelica root. Cantonese fingered citron. epimedium herb. root-bark of peony. rehmannia root. Tang-shen rhubarb. fritillary bulb. hairy deer horn Inner Mongolia astragalus. astragalus. aweto. licorice. ephedra aster. tuckahoe (Indian bread) evodia fruit. dendrobium stem rough gentian. bupleurumstellaria root Chinese Angelica. magnolia bark. hurricane lamp. ephedra. fritillary bulb. ephedra dendrobium stem. pubescent angelica root figwort. schizonepeta spike ginkgo biloba. balloonflower. chrysanthemum corydalis tuber. fritillary bulb. resurrection lily rhizome dahurian angelica root. eucommia bark oriental wormwood.Table I-2.1-1 Major TCM species and their distribution in China Location Sichuan Guangdong Yunnan Guizhou Heilongjiang Jilin Major items rhizome of Sichuan lovage. rosa banksiae. cassia. licorice Ningxia Hebei Jiangsu Zhejiang Anhui Jiangxi Shandong Henan Hubei Hunan Shaanxi medlar. evodia fruit fragrant solomonseal rhizome. blue shell. Coptis Root . Chinese Angelica eucommia bark. Chinese magnoliaving ginseng. chrysanthemum tuckahoe (Indian bread). honeysuckle flwoer. Coptis Root . phellodendron bark Sanchi. pawpaw 12 . radix asparagi amomum villosum lour. bitter orange.
There is not standard for the plantation and the test.. In addition.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. the exorbitant exploitation of the TCM resources ever-contaminated environment make the diminish or disappear of some wild TCM species. which means the small scale and outdated production facilities.I-2. China has set up over 600 plantation bases for traditional medicinal materials . I-2. Sichuan Zhongji Industrial Co. At last. breeding. screening. the communication among the peasants. Guangzhou Baiyunshan TCM Factory Yunnan Wenshan Sanchi Medicine Co. trader. As a result. which means the local peasants have to suffer from this. 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. This situation is still the major bottleneck for the development of TCM in China.000 hectares. especially the Formulated TCM.3 Plantation Base of Traditional Medicinal Materials In order to solve the problem of supply continuability. the metal content and agrochemicals residue in the traditional medicinal materials is still an outstanding problem for Chinese product. which consumes large quantity and requires production of traditional medicinal materials. At the moment.. Secondly. This is also one of the major obstacle for the continuous development of TCM in China. Species rhizome of Sichuan lovage Danshen root common andrographis Sanchi Location Sichuan Sichuan Guangdong Yunnan 13 .3-1 some production bases of traditional medicinal materials in China Sponsor company Sichuan Dikang Pharmaceutical Co. some are even frustrated by the fluctuation. the judgment for the qualified traditional medicinal materials has to resort to the naked eye. Ltd. Thirdly. identifying the qualified species of traditional medicinal materials. the Chinese people started to set up numerous of plantation bases. The total plantation area is 400. Thus the plantation and price of traditional medicinal materials fluctuate much. consumers is not effectively. Table I-2. Ltd.. in such areas as seeding. collectors. By 2002. the market information among the local peasant is not workable. China is weak in the standardization of traditional medicinal materials. Ltd.
medicine Chinese date. lilac. gadfly. Coptis Root . magnolia flower. alismatis rhizome. Ltd. ginkgo biloba.. Ltd. achyranthes root. Tuber of Tall Gastrodia. Ltd. magnolia bark. Ltd. Anhui Huaibei Mineral Bureau Forestry Department Beijing Tongrentang Medicine Factory Hunan Zhangjiajie Pharmaceutical Factory Hunan Aidisheng Micro-alga Co. belamcanda rhizome. balloonflower. gallnut. 14 . asarum. bupleurum.. ebony.. frog oil. barbat skullcap.. asafetida. mongolian snake gourd.2 Factory Inner Mongolia Ruian Grassland Eco-economy Base Shanghai Medicine Corp. Tibet Hongjingtian Development Co. phellodendron bark. fresh-water turtle shell. Tianjin TASLY Group Xi'an Tiancheng Pharmaceutical Co.. Isatis root. tsaoko cardamon.safflower. Guangsu Dingxi Agriculture Research Development Center Qinghai Jingzhu Tibet Medicine Co. They are: . dodder. chastetree fruit. Ltd. ephedra I-2. Ltd.. Shanghai Agriculture & Industry & Commerce Group Jiangsu Gingkgo Bio-chemical Group Zhejiang Kanglai Pharmaceutical Co. Ltd.. centipede. dragon’s blood. homalomena rhizome. ear dust of yellow croaker. swimming bladder. dendrobium stem.. fritillary bulb. SDA listed 39 kinds of traditional medicinal materials as especially encouraged items of TMM either for plantation or for exploitation of commercial value. Ltd.4 Governmental Encouraged Traditional Medicinal Materials Items in China In Oct 2003. 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. common yam rhizome.astragalus.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. Zhejiang Tianhuang Natural Growth Co. Harbin TCM No. Ningxia Yingchuang Natural Products Co. eucommia bark. safflower.
In this practice.5 Operation Mechanism of GAP for Traditional Medicinal Materials GAP: Good Agricultural Practice of Medicinal Plant & Animal Since end 1990s. 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 . the China government promotes the GAP mechanism among the Chinese TCM enterprises.I-2. there are 149 GAP bases for traditional medicinal materials production. 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. By 2004.
accounting to 53. there are 1. The total production value in these factories is RMB12. The sales revenue and the net profit are RMB44.5% of the total medicines in China (including western/chemical medicine) Sales value of TCM in 1996 was RMB21.360 Total commercial station for TCM amounts to 35.9 billions. 16 .059 Formulated TCM factories in China. including USD463 millions of traditional medicinal materials and USD 135 millions of Formulated TCM. The total output of Formulated TCM in 2001 is 300. Formulated TCM accounts for 73% of the total TCM. The total production of TCM preparation is 199. while it was only 60-67%% in the 1980s.000MTs. accounting for 21.6 billion and RMB4. These Formulated TCM include afrodyn. In 2001.000MTs. among the consumption of TCM. In 1998.34 billion Total production value is RMB23. injection.6 billions. tonics. the total industrial value of Formulated TCM is RMB48 billion.339 There are 470 TCM species with production value more than RMB5 millions and 21 species with production value more than RMB100 millions. The total export value of TCM is USD589 millions.107 factories of Formulated TCM producer to produce about 40 categories of various Formulated TCM including pill. There are 182 medium to large size TCM factories in China. Some statistics of TCM industry in 1996: The total asset value: RMB13. accounting to about 21. The profit after tax is RMB1.5% of total production value of TCM in China. etc.000 specifications and the annual output of Formulated TCM reaches to 370. there are 1. The total industrial value of TCM industry is RMB60.54 billions.7% of the total industrial revenue of medicine industry in China.I-3 Situation of Formulated TCM in China I-3. aerosol.000 specifications. China can produce about 50 formulations of Formulated TCM. with nearly 8. anti-affection.000 MTs. Characteristics of Formulated TCM in China The items that have fame and special functions are still popular in the international market. But most of them are small in size. In early 2000s.91 billions. Certificated organizations to do TCM business legally: 11.94 billions.1 Summary of the Formulated TCM Industry in China Some Data of the Achievement of Formulated TCM Industry in the Past Years In 1996. In 2000. respectively. There are 8.069 billion.
The management on the TCM culturing and the processing technology is not standard. which makes Chinese material less competitive to oversea materials. Chinese materials have been either rejected or lowered in price. So the quality of cultured TCM is not stable. Those that are protected by the central government are popular in the market. 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. There is not comprehensive standard to test and ensure the product quality. The culturing. So far the standard for Formulated TCM still remain at the level of qualitative test or test on some specific component. especially those Formulated TCM whose raw materials are endangered or rare. The agrochemicals or poisonous chemical remained in the TCM becomes an important issue for the export. The natural resource for the TCM has been exploited irrationally. so lead to the out-of-control of the TCM and the bad quality of the products. 17 . Problems for the Formulated TCM The traditional grown TCM still domains the production style.Tonics and the healthcare products still dominate the market and their sales keep increasing. The price of Formulated TCM kept increasing.
716 188.465.440 18.310 38.148 20.919 6.867 94.490 78.844 2002 34.147 3.856 2.675 70.472 68.298 16.657 57.803 159.016.286 47.770 924.643 155.526 38.859 110.713 927 1.964 48.058 514.594 12.804 48.119 45.563 453.243 66.017 1.047 8.099 40.025 127.786 2000 35.102 114.576 4.575 26.735 1.447 40.505.081 4.771 38.643 20.990 89.657 99.205 190.767 107.248 1.780 11.Table I-3.660 447.391 6.436 2.236 38.877 178.480 53.978 118.376 16.328 37.429 73.197.429 83.1-1 Capacity and output of Formulated TCM in the past years (Unit: MTs) No.243 6.823 88.285 16.324 36.087 60.000 3.353 51.117 12.120 5.422 144.046 4.531 109.920 927 1.127 41.953 338.659 4.518 11.396 5.149 25.842 184.344 10.011 109.021 2001 29.798 108.396 5.272 261.264 10.245 11.526 3.583 1.717 51.869 60.809 49.830 30.123.726 36.738 33.826 2.894 3.691 214.658 16.969 2.280 61.820 8.348 6.497 7.018 59.527 2. 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 26.900 78.411 1.618 106.789 275.909 14.089 203.372 1 honey pill 18 .391 11.421 25.789 26.737 69.911 10.530 79.
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%
11% 7.770 2.06% 1.140 11.530.660 3.32% 1.04% 2.33% 2.350 5.590 8.575.440 0.060 1.43% 8.130 0.81% 529.102.400 100% I-3.780 0.31% 1.56% 4.11% 1.45% 2.65% 4.10% 2.07% 216.48% 11.790 0.240 4.930 5.550 0.900 100% 69.920 8.824.942.840 1.440 8.649.170 1.660 3.273.54% 523.420 2.27% 4.69% 2.600 4.137.320 5.577.53% 8.711.950 1.96% 1.21% 5.25% 2.43% 1.1-3 Sales revenue of Formulated TCM in different provinces in China (sequence based in 2003).407.290.68% 1.590 2.66% 852.12% 151.400 0.49% 14.720 4.790 0.88% 1.830 0.290 1.13% 2.334.280 4.640 0.533.760.19% 1.380 4.34% 14.Table I-3.53% 2.445.68% 2.630 1.37% 882.170 2.810 0.330 1.603.62% 269.510 3.090 1.260 1.2 Introduction to Concentrated Chinese Herb Granule Problems for the Concentrated Chinese Herb Granule Production in China 20 .67% 319.766.54% 12.741.360 4.38% 384.041.048.030 3.88% 5.465.070.02% 1.730 0.42% 2.870 0.840 3.583.290 8.25% 1.660 7. (Unit: 1.850 0.440 5.28% 761.500 4.160 0.304.64% 1.93% 70.187.70% 3.790 1.682.212.940 0.000RMB) 2003 No.340 3.359.745.06% 38.757.130 6.790 1.019.88% 2.824.64% 606.83% 2.100 4.70% 4.580 1.10% 257.130 10.130 4.440 2.920 1.98% 1.85% 1.450 0.913.20% 692.940 2.975.52% 1.02% 3.959.194.580 1.586.21% 542.19% 166.217.18% 1.64% 1.260 1.12% 1.52% 1.430 0.731.506.02% 3.995.229.287.48% 51.12% 1.974.491.26% 729.12% 836.945.910 10.670 1.390 5.370 3.360.69% 3.060 2.113.620 2.46% 583.48% 225.167.65% 11.030 7.450 18.584.280 6.42% 605.17% 58.33% 36.62% 2.09% 1.79% 1.06% 87.680 2.930 1.363.389.80% 1.31% 1.024.88% 3.961.730 15.480 0.20% 3.500 0.78% 716.188.030.520 3.69% 4.500 0.72% 3.162.39% 256.240 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 20.370 1.903.670.400 6.160 0.82% 4.799.500 0.24% 753.585.699.19% 250.200 0.480 0.409.37% 2.072.260 2.800 0.11% 251.120 6.770 100% 133.270 1.
Of the 5. Some manufacturers still sell the poisonous TCM in the market that are forbidden to sell in China. the interest of the legal manufacturers has been greatly impaired.000 of them comply with the state drug standard. 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. Many of the Formulated TCM have different name but in fact they are referring to the same goods. Shanghai and Tianjin area.000 species of products.000 above-mentioned species. Because there are many illegal manufacturers in the market. In China. so far there is not clear and authentic definition on the term concentrated Chinese herb granule. 21 .A: By 2002. the traditional medicinal materials are listed as byproduct of agriculture. Also it is reported that there are some detritus in the concentrated Chinese herb granule C: In case of commercial circulation. especially the different between concentrated Chinese herb granules. And one third was confirmed after 1985 when China set up new method to evaluate the Formulated TCM. Some traditional medicinal materials is not processed before they are promoted in the store. The processing of traditional medicinal materials is not standard or professional. The production of concentrated Chinese herb granule has been shrinking. B: Another problem is that the product quality of concentrated Chinese herb granule is not uniform. there are about 700 manufacturers of concentrated Chinese herb granule in China. two third were confirmed before 1985. There are many fake products in the market. This brings much inconvenience to the license management for concentrated Chinese herb granule. also some manufacturers add impurities into the product and sell the product at the normal price. But only 5. Most of these manufacturers locate in Beijing. It is reported that there are about 26 kinds of formulations with nearly 10.
94% 100% 100% Table I-3.85% 10.16% 3.270 261.47% 14.170 2.570 40.290 0.05% 1.20% 0. (Unit: 1.680 76.15% 0.17% 6.96% % 2001 2002 34.39% 4.25% 10.200 23.19% 1.700 8.77% 40.820 24.Table I-3.250 96.26% 10.420 80.22% 9.49% 0.08% 3.17% 10.61% 0.38% 17.83% 3.45% 100% 4.560 3.20% 0.64% 0.620 9.2-2 Sales revenue of concentrated Chinese herb granule in different provinces in China (sequence based in 2003).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 331.46% 26.13% 0.42% 34.51% 1.91% 18.90% 58.450 180.44% 8.23% 0.950 83.520 31.30% 9.56% 31.200 2.66% 2.030 510 66.49% 24.42% 21.260 921.88% 6.800 175.75% 21.59% 3.570 10.280 2.88% 10.050 52.850 410 11.860 7.09% 13.580 12.570 11.31% 7.52% 3.000 1.960 27.42% 1.000RMB) Sales revenue No.270 142.100 79.840 90.46% 1.03% 2.2-1 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 8.78% 4.250 28.060 67.35% 0.46% 0.96% 0.21% 0.43% 1.030 9.960 14.46% 7.86% 0.070 8.110 2.93% 0.06% 8.970 58.45% 4.270 41.28% 1.20% 4.000 5.950 2.180 77.08% 0.610 34.100 4.360 5.480 .33% 35.120 20.830 75.75% 0.31% 58.780 11.40% 6.64% 2.500 16.13% 1.36% 35.950 2.37% 1.670 53.890 21.
77% 0.69% 2. aerosol . powder. liniment. the production of drop pills started from 1958. supercritical extraction. Now we introduce in brief some new formulations in China. some formulations were changed to oral liquid.48% 0. Drop Pills Drop pills is made by dropping the solid or liquid pharma and its matrix.25 Heilongjiang 26 Shaanxi 27 Liaoning 28 Jilin 29 Yunnan 30 Ningxia 31 Tibet Total 2. into incompatible phase to obtain the solid form preparation for oral intake. cream.70% 0.130 2. etc. capsule. soup.205. Later in order to improve the absorption ability and to best embody the affective ingredient. By 2003. gel. there were 9 kinds of drop pills including composite Danshen drop pill.900 5. etc. drop pill of daturian rhododendron oil. wine. some new types of formulations researched and produce like concentrated pill.3 Brief Introduction to Some New Forms of Formulated TCM in China Traditionally there are about 40 kind of formulations including pill.610 15. etc.830 6.44% 818. By 1995.470 559. tablet. after the mixture is melted. With the employment and industrialization of new technologies like super filtration. powder injection. This form of preparation was listed in CP standard in 1977. injection. boiling.450 0. tea. paste.850 100% 100% 100% I-3. Another active producer of drop pill in China is Guizhou Huangguoshu Lishuang 23 . 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 1990-1992.310 3. In China.
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. Later in 1954. Anti-tumor Cerebrovascular disease Anti-tumor Year to approve 1993 1993 1993 1994 1994 1995 1995 1997 24 . Table I-3. That is why the SDA suspended the license of TCM injection in 1985-1990. relieving Year to approve 1989 Table I-3. Wuhan Pharmaceutical Factory began to produce TCM injection made from Chai Hu. 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.3-2 Herbal injections approved to used in China in 1985-2001 No. the TCM injection development in China has not been smoothly.. Ltd.Pharmaceutical Co. TCM Injection The first TCM injection was found out in 1940. angina Anti-tumor Assisting drug for arrhythmia.3-1 TCM injection 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. that produces Yan Li Suang buccal drop pills. Now there are 11 TCM injection and 8 herbal injections approved to use in China. In the past fifty years.
John’s Wort. hop. the herbal extract has not been developed fast until in 1997. with no more than USD10 million.2 Entering 2000s. centela (cat’s foot). many are available in China but have not been developed to large scale as in the oversea countries. garlic. the herb medicine accounts about half the market.000USD) % to the total TCM 1996 66.000 20. tropine.7 1997 91. some Formulated TCM producer and even some fine chemical producers entered this market in end 1990s. 25 . bilberry.4 1999 104. there are about 200 professional companies engaging in the production of herbal extract in China. a lot of herb extract manufacturers began to extract it and launch the extract into the international market.8 1998 115.937MTs of herbal extract in 1999.370 13. So the total number of producers reached to nearly 300. St. China is plentiful in the herb resource but many resources have not been exploited successfully. valerian. green tea. In the past the Chinese scientists have developed over 40 kinds of new herb medicines.g. gastrodine. And there are over 500 kinds of herb medicine preparation. Some herb extract resources are over supply in China. anisodine. So far the Chinese researchers have extracted 400 species of natural active compound and their derivatives. There are about 800 kinds of herb medicines make from the affective parts of herb. Table I-4-1 Percentage of herbal extracts in the past years Year Value (1.920 22.I-4 Brief Introduction to Herbal Extracts in China Brief History In Chinese pharmaceutical market.. For many years. etc.000MTs resource of St. E. over 60% people would like to use herb medicines to treat diseases. 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. ginger.g. But for some unknown reasons. for example.670 9. like berberine. It is reported that China exported 9. In the countryside. John’s Wort. indirubin. scopolamine. these medicines have not entered the international market but been exported as raw materials. Ginkgo is oversupply in China. etc. However the sales revenue in most Chinese producers are quite small.. John’s Wort. In addition. China has about 4. Among some items that are popular in the international market. 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. By early 2000s. tetrahydropalmatine corydalis. E. By end 1990s. St.
ginkgo biloba.06% +31. Chinese magnoliaving. acanthopanax root. magnolia bark. 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. huperzine .870 28. red clover. astragalus. etc.710 19. because it is a new idea in China.54% -1. Chinese Angelica. China use the term grease or cream to replace the term of herbal extract.700 Increment over 2002. But in 2003. the export of herbal extract to South Korea and Singapore decreases.62% -17.77% Generally there are about 80 kinds of herbal extracts in China.000 98. glossy ganoderman.000 54. St. caltrop. resveratrol. catechin. ginseng extract.18% +4. 26 .55% -5. In CP2000.It should be pointed out that there is not the so-called herbal extract in the CP standard.000USD) 172. John’s Wort. Composite component extract: Pu Zhong Yi Qi extract Active ingredient extraction or monomer compound extraction like soybean isoflavone. Generally the herbal extract can be classified as follows: Single component extraction: like bitter orange.Major Technologies Here is the technology used for the herbal extract in China.760 114. % + 24.
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. soybean isoflavone huperzine-A Paclitaxel. red clover aroma oils. natural vitamin E Garlic extract Chinese Angelica and volatile oil resveratrol 27 . aroma. ginkgo lactone High speed countercurrent distribution chromatography tea extract EGCG continuous counter-current extraction Supercritical extraction Freeze drying Micro encapsulation Enzymolysis green tea.
Typical enterprises include Zhejiang Kangenbei Group. there were 1. Zhangzhou Paizaihuang and Zhejiang Huqingwu Tang. etc. there are 1. By 2002. Donge Ejiao Group. By end 1990s. Manufacturers focus on modern herbal medicine. 28 . The typical enterprises include Tianjin Tasly Group. and one with annual sales of more than USD 1 billions by the year 2010. The typical enterprises include Yunnan Baiyao 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. 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. Beijing Tongrentang Group. Chiatai Qingchunbao Group.283 TCM manufacturers in China. Manufacturers focus on modern technology and formulations.
990 N/A 85. Jilin Xiuzheng Pharmaceutical Group Stock Co.040 560.860 521. Ltd.290 270.050 2. Ltd.000) N/A 1..440 N/A N/A 507.710 661. 9 Sichuan Chengdu Diao Group Zhejiang Chiatai Qingchunbao Pharmaceutical Co.430 206.611.320 415.310 7 8 9 6 8 13 8 8 7 11 1. 17 18 19 20 3 16 31 13 31 14 44 N/A 583. 7 Ltd.278.310 29 . 8 Jiangsu Nanjing Medicine Group Co... Ltd.. 20 Hubei Wuhan Hongtao K Group Co. 4 Tianjin TASLY Group 5 Jiangxi Huiren Group 6 Shanghai Lei Yun Shang Pharmaceutical Co.300 N/A 833.. 13 Jiangxi Jiangzhong Pharmaceutical Co.099.660 209..317.281.537. 3 Beijing Tongrentang Group Co. 11 Shaanxi Topsun Group Co.501.550 N/A 387. Ltd..920 1. Ltd.210 511.690 303... Ltd. 10 Ltd.00 0) 1 Guangdong Pharmaceutical Holding Ltd.300 1. 2 Tianjin Zhongxin Pharmaceutical Co.660 N/A 1.. 12 Hunan Jiuzhitang Co.080 1 2 3 4 5 6 4 12 7 1 2 6 5 4 3 4 12 3 1 N/A 2. 15 Shandong Dong-e E-Jiao Group 16 Shandong Lunan Pharmaceutical Co..160 1.590 N/A 454. Factory List List List List e 2001 (RMB1. Ltd.002.840 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. Ltd.. Ltd.140 1.519. Guangdong Sanjiu Medical and Pharmaceutical 17 Co.310..080 522. Ltd.080 1. Ltd. Ltd.150 2003 2002 2001 2000 Sales revenue 2000 (RMB1.220 571. 19 Henan Wanxi Pharmaceutical Co.094. 18 Guangxi Guilin sanjin Pharmaceutical Co. 14 Chongqing Taiji Group Co.. Ltd.070 2..Table I-5-1 Top 20 manufacturers of Formulated TCM in China (sequence based on 2003) Sales revenu No.
000 135.000 N/A N/A 139.000 520. hairy deer horn.770.1.000 296.660 368. Formulated TCM.180.000 488.000 123.747 123.000 406. Less value-added products 30 .769.000 589.000 108.010.000 27.000 261.000 332.700 Formulated TCM Quantity N/A N/A N/A 22.000 27. Chinese Angelica.030.000 457.000 161.000 228.000 573.910. 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 N/A N/A 22.960 322. In the past the export of Ginseng.982. But in the international market.190. The export of TCM was assigned and organized by central government in the past.1-1 Export of TCM in the past years (Unit: Quantity (MTs).090 217.I-6 Import & Export of TCM in China I-6.000 28.085 N/A Value 241.589.890. Role of central government is decreasing Now China can export over 500 TCM is an important item in medicine foreign trading.000 655.000 383.970 104.000 115.510.930 427. healthcare product and functional food.000 169. The export of other items is carried out by the subsidiaries of China MEHECO.000 33.000 130. the TCM exported from China can only be regarded as healthcare product and food additive instead of as medicine. species of TCM.690.000 123.000 131.000 443.000 245.038.000 418.970.000 390.000 121.000 320.000 237.880 403.790 185.360 Total value I-6. royal jelly and Panax Pseudo-ginseng is exported in name of China MEHECO. All the export quota was assigned by China Medicine & Healthcare Corporation (China MEHECO).000 466.000 491.000 225. concentrated Chinese herb granule.000 295.1 Export Situation Table I-6.787 N/A Value 127.000 242.611.000 22.000 177.380. Value (USD million) ) Traditional medicinal materials Year Quantity 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 111.1 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.000 497.050.000 269.000 128.
which limit the export of some TCM. By 1995. This why export quantity increase but the export value decreased. E. which make this industry chaos. in 1996. South Korea and Taiwan has been developing fast in the recent years. The governmental administration cannot meet the demand from international market. There is not systematic plan for the plantation of herbs so the supply of the traditional medicinal materials is not stable. It is estimated that the Traditional Medicinal Materials exported to oversea accounts to about 60% of the total TCM exported. 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..g. China published a paper to limit the export of the endangered species. the export of traditional medicinal materials reached to its utmost level. USD520 million. And the standardization of TCM in these countries/areas is more advanced than that of China. So these oversea companies demand more of traditional medicinal materials than before. tariff rebate while the tax is 3% . About 30% TCM was exported through this way. According to some statistics the number of TCM with export amount of more than USD 100. The reason why the export keep decreasing in the second half 1990s: Most trade was traded with RMB instead of USD. 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 . Chinese enterprises have not exploited the market thoroughly. The TCM that have high value or high profit only accounts for less than 20-30%. There was even much decrement for the export of traditional medicinal materials. However the export of Formulated TCM decreased in the past years. 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. 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. However afterward the export of traditional medicinal materials fluctuated much. The exporters compete each other by lowering the export price. The export in some state owned exporters decrease. The TCM industry in Japan. There are many supervision organizations to manage the export of traditional medicinal materials.In China most of TCM are export as raw materials. Some enterprises are afraid of the international market.000 per year is less than 45. However it need time to fulfill the acceptance as in Europe TCM is usually regarded as a food supplement instead of medicine.
total export of TCM. Hong Kong takes an important role in the popularity of TCM around the Asia and world.1.2% of the 32 . the export of herbal extract to North America has been increasing significantly. Hong Kong. The TCM exported to Hong Kong accounts to about 20-30% of the total TCM exported.- The Chinese companies pay less attention to the certification on the oversea countries and put less money in packing. Thus the export of Formulated TCM has been decreased. It is expected that the export of TCM in 2004 will be USD750-800 million. so do the Formulated TCM. and Taiwan. Japan.2 Destination Countries Chinese TCM is exported to those Asian countries that are affected by Chinese culture. Every year the export quantity/value of TCM exported to these countries accounts to about 70% of the total export quantity/value. some transited to South Korea. the amount to Asia accounts for 66. where demand for much traditional medicinal materials USA and Europe where consume much herb The most popular countries for TCM export include Southeast Asia. In the recent years. Traditionally there are three major sections for TCM: Southeast Asia where Formulated TCM has been consumed for many centuries. etc. USA. I-6. In 2002. advertisement. Japan and South Korea. While about half the TCM to Hong Kong are transited to Taiwan.
814 24.695 38.032 16.867 2.798 20.109 57.439.395 22.971 1.296 N/A N/A 16.854 8.485 2.499 N/A N/A 53.979 9.015 2.527 44.928 57.150 10.807 1.402 7.328 2003 333.683 N/A N/A 45.544 31.20% 408.2-2 Table Export of TCM to major countries in 2000 and 2003 (unit: USD1.810 58.030 1994 1.534.420 33 .161 121.432 1.600 97.717 4.994 1.398 48.000) Year Asia Africa South America North America Europe Oceania Sub total % Total 1991 308.557 639.912 91.008 86.532 9.2-1 Export value of TCM to various continents in the past (unit: USD 1.170 7.268 427.575.289 2.818 2.259 1.951 17.336 14.1.60% 655.856 3.002 N/A N/A 23.000) 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 80.221 248 10.313 41.287 153 5.844 19 1.774 3.924 1.895 1993 325.564 3.343 100% 427.205 40.796 372.80% 368.Table I-6.40% 1.049 7.066 6.673 97.343 Table I-6.599 352.914 8.466 94.297 61.1.358 N/A N/A 15.392 5.986 14.339 5.535 46.033 1992 337.340 925 743 7.946 3.871 4.520 152 262.630 22.368 4.991 460 851 1.660 366.640 1995 534.403 1.333 3.759 631 71 227.20% 389.576 95.346 7.422 18.
466.380 7.700 7.130 34.628.221 155.929 1.951.231 46. for pharmaceutical 4 5 bitter apricot seed 6 7 8 9 10 fresh royal jelly licorice juice and infusion fresh royal jelly powder medlar 8.965.082 N/A N/A 7.3 Export of Major TCM Items in the Past Years Table I-6.770 2.635 0.426.010 5.734 N/A N/A N/A N/A purpose American ginseng 13.455 3.459 1997 N/A N/A 1996 N/A N/A 34 .419 N/A N/A 40. Items 2003 1 2 unmilled cassia and 3 cassia flower) other botanical products gel solution and thickening agent.874 1.458 16.590 6.333.589.173.760 21.143 694.612 203.I-6.611.975 373.371.928 6.326 9.510 13.892.200 6.185 N/A N/A 34.381.479 642.980 22.214.171.124.940 4.134 5.3-1 Export of traditional medicinal materials in the past years (Unit: Quantity (MTs).393.275 6.000 4.240 2.153 22.218 N/A N/A other Other ginseng 30.100 17.117 5.981 8.129 N/A 8.481.664 4.100 1.540 0.966 N/A 9.580 0.004 N/A N/A N/A N/A 567.697.022 N/A N/A 107.060 6.540 N/A N/A 2002 N/A 2001 N/A 1.471.262 6.990 9. Value (USD million)) No.595 7.160 28.310 5.985 1997 N/A N/A 1996 N/A N/A 2.420 3.797 Quantity 2000 N/A 2.406.433 140.300 2.101.180 8.920 N/A N/A 4.487 2.050 8.060 1.436.120 2002 N/A 2001 N/A N/A Value 2000 N/A 15.1.690 20.626 3.365 4.300 10.269 1.679 4.447 3.
000 3.808.978.110 167.572 606.311 2.820 N/A 4.331 N/A N/A N/A 74.695 3.219.144 2.062 4.847 38.542 1.622 3.900 474.450 2.568 6.785.672.100 4.304 2.260 4.815.400 1.307.000 4.230 N/A N/A or similar usage hairy deer horn and its powder tuckahoe bread) other licorice fritillary bulb Tang-shen (Indian 5.038.450.185 1.180 N/A N/A 3.473 8.000 343.762 3.580 6.764.010 6.163 N/A N/A 2.170 3.202.183 1.658 1.396.900 4.665.644 N/A 2.379 9.377.534 N/A N/A N/A N/A N/A 5.916.700 1.800 2.395.591 548.805 2.027.754 319.351.600 35 .361.595 N/A 3.380 4.654 3.289 2.776.507 175.435 6.933 4.725 4.300 853.167 4.583 2.644 2.678 N/A 286.492.994 2.091 2.480 5.475 3.012 2.600 2.457 N/A 2.380 3.303 8.514.356 366.200 3.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.199 2.685 2.020 3.440 3.250 3.675 2.318.880.441 3.904.999 3.433 2.947.551 2.227.584.100 2.677.996 1.280 3.578 1.785.600 0.000 3.414 5.226 2.200 6.378. fungicide 6.737 0.184 N/A N/A 6.725 3.719 3.000 3.534.891 1.234.799 0.040 2.667.600 1.600 7.868 3.424 1.541 129.839 4.170 4.535.860 4.774.406.530 2.083 6.927 N/A N/A 6.700 1.500 4.522 6.665.460 4.300 1.270 4.797.446 2.992.166 N/A 5.080 145.551 730.260 3.637 3.435 238.537 3.000 1.960 N/A 5.700 220.310 2.260 3.989.060 5.894 3.870 6.065 5.114 2.534 33.070 2.748.338.709.030 4.003.062.400 7.780 3.140 4.200 N/A 213.110 4.520.090 4.196 N/A N/A 6.039 7.990 3.060 4.720 5.490 5.730 2.663.780 5.380 3.111.470 1.588.
568 1. seed Xinjiang licorice turmeric Aweto hackmatack 1. baleen.398 N/A 1.330.750 0.676 N/A N/A N/A 16.600 1.000 0.071 829.030 2.900 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 0.145 2.900 31.984 0.040 1.945 586. other 0.660 2.575.233 1.020 0.560 0.010 2.270 1.900 0.053 2.923 1.123 6.790 2.167.317 192.093 1.098 N/A 15.057 0.348.429 N/A N/A N/A N/A N/A N/A 847.819 1.725.830 1.270 5.119 N/A N/A N/A N/A 1.900 N/A N/A 36 .582 1.182 2.988 21.042.648 1.501 N/A N/A 0.410 N/A N/A 168.502 3.400 N/A N/A N/A N/A N/A N/A 42.974.570 1.862 2.528 N/A 893.052.580 0.601 1.607.890 0.447 N/A N/A 0.051 66.929.780 0.030 1.259.848 1.570 1. claw and N/A N/A N/A N/A 13.800 3.200 N/A N/A N/A N/A N/A N/A 945.026.150 1.550 0.247 N/A N/A 50. fur.132 303.774 1.800 2.132 N/A N/A 1.064 1.150 1.064 0.840 0.126 1.682.200 animal foot.396 720.740 N/A eucommia bark ladybell root 1.270 1.412 1.032.643.700 1.800 3.580 2.746 0.551 3.850 0.274 Coptis Root rhizome lovage rhubarb cumin.659 1.420 0.460 N/A 0.247 2.410 0.114 0.922.350 1.790 N/A N/A 0.654 N/A 503.929 21.348.690 0.725 0.600 109.937.640 1.710 1.432 3.100 1.000 1.200 N/A N/A 186.414 of Sichuan 1.592.876 N/A N/A 67.883 N/A N/A N/A 171.877.143 shell.950 0.415 N/A N/A 111.
127.025 N/A N/A N/A N/A N/A N/A 24.024 N/A N/A 0.375 0.008 1.026 4.148 0.945 N/A 85.023 N/A 0.379 47.098.050 0.620 24.014 0.010 0. myrrh.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 0.140 0.770 N/A 82.014 0.030 0.022 N/A 0.890 0.000 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 0.400 N/A N/A 0.470 438.000 0.001 0.550 N/A 21.058 N/A N/A 76.219 24.844 N/A N/A N/A N/A N/A N/A 37 .467 7.600 N/A 32.050 0.206 15.060 0.010 0.742 N/A N/A 25.949 N/A 328.056 N/A N/A N/A 0.040 N/A N/A N/A 0.840 37.500 7.742 N/A N/A N/A N/A N/A 0.036 425.024 0.050 misiacaraway 0.020 N/A 0.144 N/A N/A 1.885 N/A N/A 0.433 N/A 26.42 43 derris root.973 N/A N/A 47 48 49 50 51 52 53 54 55 56 plant Da Hai seed lilac Frankincense. laurel leaf safflower seed anise seed cardamomum 0.738 N/A 97.022 N/A 0.023 N/A 0. dragon’s blood Wild ginseng ( except American ginseng) coca thyme. pyrethrum bud of Chinese glands and for other scholar tree Unlisted medicine 0.229 0.015 0.064 N/A 0.340 0.080 0.030 0.084 0.009 0.063 N/A N/A 14.001 N/A 35.584 N/A N/A 1.080 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 0.003 0.043 N/A N/A N/A N/A N/A N/A N/A N/A N/A 20.080 N/A 0.033 0.090 N/A N/A 0.
840 N/A N/A N/A N/A N/A 6.010 0.284.153 N/A N/A 43.010 0.983 N/A 115.520 N/A N/A 0.210 N/A N/A 130.053 0.333 N/A 68.458 N/A N/A 0.353 N/A 6.008 N/A 0.080 0.003 N/A 0.001 0.758 N/A N/A 0.060 N/A N/A N/A N/A N/A N/A N/A 1.500 0.050 N/A 73.000 N/A 0.432 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 0.917 0.182 N/A N/A 0.060 93.391 126.960 N/A 78.000 17.707 N/A N/A 0.816 145.265 38 .985.403.570 N/A N/A 0.424 0.200 46.257.80 Total 191.543 18.430 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 0.205 50. gland and other animal product xanthate ossein and bone proceeded with acid cummin seed other safflower seed other fresh ginseng muskiness beast tooth tooth.003 N/A N/A N/A 0.001 0.839 21.000 0.279 6. powder beast and 0.017 N/A N/A 0.958 N/A 20.449.064 N/A N/A 0.003 N/A 72.562.756 N/A 1.038 N/A 0.396 N/A N/A 30.001 10.500 N/A 0.400 0.868 301.000 3.241 N/A 0.454 0.57 58 59 60 61 62 63 64 65 66 67 gharu-wood cardamomum White drug-powder cantharis gall.816 N/A N/A N/A N/A N/A N/A 71 and flavor N/A 319.085 N/A 4.677.589.658 0.241 3.612 N/A 0 N/A 0 40.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.230 N/A 217.70 39.768 N/A N/A 0.
660 177.890 0.100 103.967 2.665 5.207.141 29.1.628 1.812 31.037.935 32.912 N/A 16.466.387 160.3-2 Export of Formulated TCM in the past years (Unit: Quantity (MTs).882.521.868.869.619 14.660 10.689.982.Table I-6.700 2.900 5.124.810 2.545 6.040 4.594 8.283 N/A N/A 11.698.116 1.869 3.898.480 77.180 10.520 0.310 0.495 2.500 2.500 N/A N/A 2.967 23.120 7.410 8.265 5.210 13. 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 104.800 N/A 74.930 12.090 N/A N/A 3.130 3.809 1.259 57.912 N/A 22.581.655.288 7.800 N/A N/A 2003 2002 2001 2000 1997 1996 2002 2001 Quantity 2000 1997 1996 39 .112 13.070 76.565 36.120.740 2.839 3.890.830 3.590 0.570 8.400 6.450 16.597.747 N/A N/A 11.260 83.335.017 30.260 9.240 9.787 and 9.830 1.680 51.200 3.631.244.919 6.484.760 33.
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%.
baleen. dragon’s blood 8 9 10 Other plants or their parts uses as insecticide.701 N/A other unproceeded or de-fatty bone or corner post other ginseng 1.140 2000 2002 Quantity 2001 2000 42 .170 beak hairy deer horn and its powder 2. for pharmaceutical purpose) American ginseng 13.180 3.494.940 29.340 0.284 0. claw and 6 7 Frankincense.747 N/A N/A 2.296 1.150 2003 13.396 N/A N/A N/A N/A N/A 1.750 16. other animal foot. Value (USD million)) Value No.330 2.344 N/A N/A 2.002 0.397 English name other botanical products gel solution and thickening agent.460 933.070 N/A N/A 0.140 2.438 3.656 N/A N/A 331.2.050 N/A N/A 272.209.260 1.423 1.770 N/A 0.205.884 0.410 4.655 31. 1 2 3 4 5 turtle shell.920 1. baleen fur.240 1.006 0.2-1 Import of traditional medicinal materials in the past years (Unit: Quantity (MTs). fungicide or 11 12 13 similar usage lilac xanthate 1.049 865.742.880 1.240 herbs and its parts used mainly as spice and flavor other licorice juice and infusion 9.720 9.060 N/A N/A N/A 3.myrrh.927 N/A N/A 373.005 2002 2001 1.950 N/A N/A N/A 0.098 2.058.930.Table I-6.189 N/A N/A N/A N/A 0.083 2.528.730 N/A N/A N/A 2.550 0.998 21.136 169.610 1.342 N/A N/A 5.433 1.380 1.387 N/A 28.544 N/A 57.614 1.190 2.505.990 0.
480 0.947 62.089 1.775 536.870 0.570 0.958.219 0.765 N/A 120.780 591.032 0.114 1. 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 0.180 0.492 6.390 0.461 948.260 0.752.124 0.230 1.629 N/A N/A 0.105 N/A 173.890 0.955 749.303 0.053 33.757 0.345 1.104.801 0.708 N/A 1.400 148.320 1.244 1.165 N/A 657.589 N/A N/A 14.128.128 N/A 1.357 493.000 1.235 0.111 680.780 0.498 0.460 358.170 0.000 0.370 0.095 0.020 N/A 0.320 N/A N/A N/A 0.250 0.423 0.081 0.773 43 .512 1.469 N/A N/A 120.390 883.100 0.704 N/A 0.770 0.860 243.068 33.160 0.954.360 1.415 N/A 0.949 N/A 8.590 52.180 99.259 744.000 0.045 0.032 0.180 1.743.633 0.239 0.970 0.large head atractylodes rhizome 14 fritillary bulb 15 thyme.210 0.380 0.008 0.032 23.100 0.
002 0.013 0.040 0.850 N/A 2.100 N/A N/A 0.006 0.721 10.375 0.028 0.001 5.107 0.024 0.190 0.029 16.455 101.020 0.046 N/A 0.011 fresh royal jelly turmeric 0.024 0.766 0.004 0.844 1.003 0.381 N/A 0.004 0.496 0.0.590 163.005 83.025 0.023 0.129 0.005 0.666 0.884 1.310 1.307 16.031 0.380 0.872 N/A 0.199 0.014 8.010 N/A N/A N/A rotenone-containing plant astragalus 0.156 0.007 0.978 0.054 0.708 35.460 480.598 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 0.406 0.215 0.000 cumin.000 N/A 0.006 0.384 N/A 44 .007 N/A 83.650 N/A 4.001 N/A 0.019 0.016 0.556 15.030 0.193.752 N/A 22.065 1.006 0.000 107.100 43.093 0.000 0.010 0. hackmatack seed derris root.175 76.569 0.009 0. pyrethrum medlar 0.830 0.153 33.001 665.135 0.
000 0.629 0.002 0.002 0.991 N/A 361.560 175.955 50.500 N/A 8.152 0.000 0.234 N/A 1.000 47.562 cilantro seed rhubarb cummin seed unmilled cassia and cassia flower 0.007 N/A 4.002 7.002 N/A 0.187 N/A 0.417 resh royal jelly powder Chinese anise N/A N/A 0.001 0.500 N/A 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 0.000 19.013 0.003 0.000 13.185 N/A 13.002 0.047 0.040 45 .002 0.200 Tang-shen Pseudo GinsengPseudo Ginseng rehmannia root N/A N/A N/A 0.060 0.161 0.864 15.003 0.005 N/A 0.020 0.092 0.199 8.278 0.005 0.402 N/A 0.000 9.004 N/A N/A 0.275 N/A N/A 10.008 0.949 1.018 N/A 0.000 0.001 0.042 743.009 N/A 0.0.600 0.648 3.000 N/A 0.050 0.160 0.304 0.300 52.350 0.060 N/A N/A 0.083 2.137 1.003 N/A N/A 24.020 0.003 0.240 N/A N/A N/A N/A 0.
000 0.317 N/A 0.283 0.020 N/A N/A N/A 0.029 N/A 23.Tuber of Tall Gastrodia 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 muskiness beast tooth.823 N/A 0.181 6.850 N/A N/A N/A 5.769 1.005 N/A N/A 9.051 0.019 N/A N/A 0.310 N/A N/A N/A N/A N/A N/A 0.065 0.008 N/A N/A N/A N/A N/A 0.951 4.008 N/A N/A N/A N/A N/A N/A N/A 0.001 0.001 N/A N/A N/A 0.381 313.001 N/A N/A N/A N/A N/A N/A 0.096 46 .152 0.950 0.002 N/A N/A N/A N/A N/A 0.005 0.030 N/A N/A N/A N/A N/A N/A 0.061 N/A N/A 0.060 204.001 1. gland and other animal product ossein and bone proceeded with acid other fresh ginseng fresh ginseng maw seed Wild ginseng. beast tooth powder and scrap bird’s nest arte misia White drug-powder cantharis gall.180 N/A N/A N/A N/A N/A N/A 1.000 1.575 0.087 N/A 0.003 N/A 0.299 0.004 N/A N/A N/A 0.120 N/A 0.002 N/A N/A N/A 0.400 1.450 N/A N/A 0.346 N/A 0.493 3.400 N/A N/A 63.930 0. (except American ginseng coca safflower seed anise seed gharu-wood N/A 0.
664 25.Total 61.800 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 .576.510 N/A 6.502 0.186 57.578.179.850 N/A 93.380 0.200 N/A 50.730 92.399 44.569.446 10.412.715.759 49.510 0.375 46.289 N/A 15.272.509 126.96.36.1994.300 1.420 7.412 N/A 13.176 8.426 N/A N/A 13.610 18.299 1.670 N/A 494.350 N/A N/A 95.729 441.223 15.445.660 N/A 60.219 10. 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 94.581 Table I-6.234 N/A 20.2-2 Import of formulated TCM in the past years (Unit: Quantity (MTs).025.050 555.951.820 416.856 N/A 24.
even around China: the expression of the TCM theory and dosage. This is the main obstacle to TCM entering into the international market. administrators and patients to understand. But Chinese medicine is complicated in composition and is hard to be described clearly. there is a series of scientific methods to ensure the medicine for its properties as safety. This is why it is hard for modern scientists. effectiveness and well proportion. For example. In fact the theory of TCM is complicated and explanation of the indication. thus hindering the TCM entering the international market. The TCM theory is hard to unify with the pharmaceutical theory in the western world. But TCM is lack of scientific support in its affects. It must have direct action on patients. In most circumstance. such as Japan and Switzerland. This situation does not coordinate with the trading rule. 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. the label on the packing is different to the actual component. However. stability. the scientific evidence In the international market. The US has about 28 state-owned and privately owned TMC colleges. And Beijing TCM University is collaborating with a German partner to establish a hospital in Germany. I-8 Some Commercial Facts of TCM Industry in China 48 . Middlesex University in the UK and Beijing TCM University have jointly set up a TCM bachelor degree and higher research degrees in London. Sometime. about 14 Chinese TCM producers have now passed the GMP certification conducted by the Australia and German pharmaceutical administration. old practitioners only prescribe the recipe based on their experience or even by feeling. including a subsidiary of Shanghai TCM University. only a handful of countries. quality and safety.I-7 TCM Entering the International Market – Difficulties & Achievement By early 2000. The government is assisting institutions cooperating with overseas counterparts to establish TCM academic institutions and clinic joint ventures. So far the China-made TCM still share less market in the world. hindering TCM entering into the international market. there is a fundamental shortcoming for the popularity of TCM around world. the pharmaceutical system difference In western pharmaceutical theory. function and application of TCM is too abstruse to express with modern language. and to get TCM on the world stage. However. grasp and accept the TCM. so in order to protect their technology some Chinese manufactures do not label the component of TCM on the packing. have accepted TCM in their national health insurance systems. the label strategy Most TCM is not well patented. medicine should have a clear constitution and a clear action. China wants more countries to do so.
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.61% 40.35% 100% 4.48% 17.2 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.13% 45.56% 188 33. acquisition.65% 487 37.47% 100% 100% 100% 2000 372 129 411 2001 297 108 514 2002 243 93 443 2003 2000 % 2001 9.27% 14. Second.35% 22. concentrating assembly.I-8. Some new sales system has replaced the old system that had to depend on the traditional stores. executive sales.127 144 169 1. the ownership of TCM companies has changed much in the past two decades.60% 26.25% 17. The new sales formats such as executive agent. most Chinese TCM enterprises were state owned ones. many small size enterprises have been kicked out of the market. or even the local government. At the same time.58% 2002 8.20% 78 11.1 Economic Structure of TCM Industry Ownership Switch Table I-8. chain management.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. the traditional old stores have been modified and innovated with service 49 . the management system has changed.093 2. Among the Chinese TCM enterprises. First some formal stock companies formed in the commercial logistic of TCM in China.107 161 47 1.17% 15. 8 of them are top 500 fortunes in China. have formed in China. I-8. Now there are many large-scale TCM enterprises in China.57% From the above table we can see that in the past years.092 149 15.19% 13.14% 44. This reflects the general situation of the ownership in China in the past five years. etc. But this situation changed much in the past two decades.29% 13. Achievement in the Recent Years After the reform and self-modification.63% 191 1.52% 2003 7. But after competition. As stated in the previous sections.
Zhangshu. Guangzhou Qingping.Trader Marts In the thousands of years of history. . Guangxi Yulin.3 Sales Network of TCM .content of modern system. After the open of China to the world. Zhengzhou Nandajie. And the existing marts have been standardized. some distributing center developed in the last few years. the famous distributing centers of TCM include: Hebei Anguo. a lot of distributing center of TCM has form around China. Anhui Haozhou. Baiquan. I-8. In the past. 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. All these factors attribute to the switch of TCM industry from the wild & mass expending to systematic and strategically development. They are: Sichuan Hehuaci. Xi’an Kangfulu. Also the central government has suspended some illegal trade fairs for traditional medicinal materials. Yuzhou.Type of Traders 50 .
It is estimated that the trade amount in the market is at least RMB10 billions per year.With the open of TCM market in mid 1980s. There are fixed facilities and professional persons to engage in the purchase. They buy TCM from countryside and sell them to the cities. like some foreign trade companies. there are several kinds of entities to distribute TCM in China. 51 . wholesales and quality security of TCM. a lot of entities have engaged in the distribution of TCM business around China. Local TCM market The There are 17 TCM markets around China. In every market there are a lot of boots to deal with TCM. Other miscellaneous companies and individual persons. mostly these boots are privately owned. sales in these enterprises decrease in the past few years. State owned TCM distributors They are distributing TCM in the areas of counties or above. After ten years development. The private traffic dealers These people distribute around the cities and countryside. distribution. For various reasons the state owned TCM commerce entities operate in deficit.
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.
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. the standardization is not consummate and the production scale is relatively small. In 1998. 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. Chinese people aim in the next few years is to solve these problems. the quality of TCM is not stable. The research level on TCM is low. and strengthening their R&D capabilities. 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. 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.2 Involvement in the TCM Research Every year some large TCM enterprises receive thousands of graduates from Chinese universities. About 700 kinds of TCM have been 54 .1 Governmental Plan for the TCM Research In as early as 1996. China has approved over thousand new TCM drug. the Chinese government put the TCM project as a primary task. To increase the market share from 5% at present to 15% in the future world market. After the enforcement of The Examination and Approving Process for New Drug. 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. 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. For instance.I-10 Research & Modern Approaches to TCM I-10. To culture Chinese enterprises which are competitive in the international market. offering attractive postdoctoral package for young researchers. According to some statistics. there are 29 universities and 51 primary schools of TCM that are conducting the research on TCM. approved to begin commercial production.
initiated by our country. fast. The national general survey of herbal resources provided reliable date on the distribution and reserves of the medicinal herbs. portable and edible. 55 . 127 programs of scientific research won the State. The cultural revolution and the medical system in rural areas promoted the sue of TCM and accelerated its scientific study.cerebro. and new drugs have been developed via structural modification. 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. And fingerprint quality control method has been used in very new injection. Lead compounds such as artemisinine. In 1978-1993.I-10. The researches on the varieties of Chinese crude drugs provided scientific proposal for revising the national standards. characterized and tested. traditional Chinese medicine provides a rich source of potential lead compounds. More than 500 species of herbs have been studied using modern methods. cardio. researchers have also got remarkable progress in the study of the implications and the therapeutic method and principle of Zheng-syndrome in TCM. It is reported that quantitatively quality control method has been used in every newly approved Formulated TCM. agrimophol and pseudolaric acid. I-10. By means of modern scientific technology. The research of Qinghaosu (Artemisinin) has opened up a new road to treat pernicious malaria. The pioneers in this field were Zhao Cheng-Gu. In case of formulation type. With more than 12. Now there are many R&D projects concentrating on modifying natural products. One of most significant examples is the development of the anti-malaria medicine artemether from studies of qinghao (artemisia annua). has unceasingly got breakthroughs and is keeping at the top level in the world. aiming to integrate it with biomedical sciences to form a common body of medical knowledge. the first director (1932-1966) of Shanghai Institute of Material Medical.4 Modern Approach in the TCM Research . maytansine. there were 170 research institutions across the country. of which 77 were independent units.800 herbs.level prizes and 482 programs won the prizes awarded by the Ministry or the SATCM. For many years. etc. the science and technology of TCM have got rapid development. and hundreds of compounds have been isolated. Chinese researchers have applied scientific methods to studies of TCM.Quality Improvement of TCM Recent years the quality of Formulated TCM has been improved.3 Brief Introduction of the Achievement in TCM Research Since the founding of our People's Republic.vascular diseases and hepatitis. have been identified. Encouraging progress has been made in TCM treatment of tumors. whose activity has been confirmed by trial and error over thousand of years. Acupuncture anesthesia. the Formulated TCM is moving toward the direction of efficient. animal extracts and minerals. In 1993.
such new technologies have been used: multi-function extraction. dynamic extraction. Recently it was announced that three universities. injections. Some species already passed the FDA of USA and begin the clinical research. pastes and pellets made from rough raw materials. Modern biological technology has also been adopted in TCM studies. and a number of national research centers were established alongside the existing nationwide Chinese Academy of TCM. SDA has issued about 700 certificates to new drug. But modern pharmaceuticals techniques are steadily penetrating every aspect of TCM. and in recent years products have emerged using pure herb extracts in modern dosage forms including covered tablets. Their results may find applications in quality control of raw herbal materials. freeze-drying. are participating in TCM research with Chinese research institutes. paracelsian and Anti-Cancer. Roche Bioscience cooperated with the Shanghai Institute of Organic Chemistry in identifying components of TCM and synthesizing organic compounds. the efficacy of TCMs and reducing their toxicity. scientists at Beijing Science and Technology University carried out a pilot study of production of the anti-tumor compound praclitaxel through cell culture.During the ninth-five-year period. and several US companies. the Chinese research on Formulated TCM focuses in the diseases of the 56 .6 Summary of the Research on Formulated TCM In the past 15 years. will collaborate in TCM research sponsored by a Hong Kong-based business group. These modernized TCM products are being sold alongside chemical-based medicines in hospitals and pharmacies. New Technology & Equipments In terms of production equipment & technology. Also many TCM factories passed the GMP certification. TCMs are traditionally dispensed as pills. Recently. I-10. In a recent government reshuffle the bureau for TCM was left untouched. powders. including Genelabs. Analytical techniques such as gas chromatography (GC) and high-performance liquid chromatography (HPLC) are being applied in quality control. Gene technology also has potential applications in increasing I-10. Hong Kong Chinese University. one-step granulization. Multinationals and Western scientists are also interested in TCM. and researchers at China Pharmaceutical University and Zhong Shan University have started work on classifying and identifying Chinese herbs by establishing their DNA fingerprints. capsules and even controlled delivery systems. etc. Harvard Medical School and Beijing Medical University.5 Foreign Involvement in the TCM Research Clearly the Chinese government takes TCM very seriously. spray drying. multi-efficiency concentration.
nose disease: 3% Dermatology disease: 2% Ophthalmology disease: 1% From the formulation point of view.7-1 New TCM drugs approved in China – by formulations No. including digestive system disease (25%). the majority of researches focus on the traditional formulations like syrup. pill. 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 . This means that most of the Chinese research on TCM focuses on the composite formulations and the modification of the formulations. etc. In the recent years. 170 of them are the third class new drugs and 170 of them are the fourth class new drugs. more research have conducted to such new formulations like drop pill. I-10. throat.7 New TCM Drugs Approved by SDA in the Past Four Years Table I-10. paste. These two types accounts for 94% of the total new drugs. respiratory system disease 13%.following areas: Internal disease: 73%. From 1999-2000. SDA approved 361 new drugs of TCM. urinary system disease 4% Gynecology disease: 7% Pediatrics disease: 6% Surgery disease: 4% Orthopaedics disease: 4% Eye.
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 .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.
what is more. the Japanese government approved 210 kinds of Formulated TCM in Japan. Mars of Germany who is specialized in the natural herbal medicine. Those small in number (3% of the total number of Formulated TCM in China). Huashi Drug Store and Leiyunshang Drug Store) who are also selling the natural pharma from Germany. after changing the packing or making into Formulated TCM.g. France and Japan. In the past. By 2002. decides to focus on the China market in the future.g. E. by end 1990s.5 million to CAS Shanghai Pharmaceutical Research Institute to screen the new compounds for pharmaceutical. in Chinese market with high price. Dr. 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 . The same is pacletaxol.1 Drug Store. some German companies bought ginkgo leaf from China and extract ginkgo biloba back to China.I-11 Involvement of Foreign-Brand TCM in China Contrary to the weak sales of Chinese-brand TCM. According to the investigation to three major pharmacy stores in Shanghai (Shanghai No. the foreign-brand TCM has shared considerate market in China. Another example is that Norvatis of Swiss invested USD4. E. It is reported that there had been 40 natural pharmaceutical registered in China by 2001. E. it is estimated that these Japan-made Formulated TCM share about 70% Formulated TCM market around the world. So far they have invested RMB10 million in the advertisement in southern China. there are ginkgo biloba preparation made from Germany and France. In the recent two years (since 2000). 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.g. more and more famous foreign companies entered the Chinese market. the number of oversea natural drug is no more than 20 species. some oversea companies purchased large quantity of cheap traditional medicinal materials from China and resell it. there are typical oversea brands. 147 of them are made on base of the Chinese traditional recipe. Now in the market. And. 75% of the raw materials for these Formulated TCM are from China.
(Hong Kong) He Xing Bai Hua You Co. The major disadvantage for the oversea brand is that its price is much higher than that of domestic made TCM. 50mL/bottle Powder. Ltd. Lingnan Pharmaceutical (Hong Kong) Co. Ltd. while for domestic made product it is only RMB12/20pieces. (Hong Kong) He Xing Bai Hua You Co. 5mL/bottle Manufacturers He Xing Bai Hua You Co. 2. Ltd.of TCM in China accounts for no more than 1%.. Ltd. Ltd. Ltd. However we believe that more and more foreign products will be accepted by the Chinese people in the future.. 20mL Oinent. Desheng Pharmaceutical Co.. 0.34/bottle Pill Oinent.55mL/bottle Oinent.g. (Hong Kong) Lingnan Pharmaceutical (Hong Kong) Co.. Ltd. Yu Ren Sheng (Hong Kong) Co.. 10mL/bottle Specifications Oil. Ltd. 0.. Some is even 10 times that of the domestic brands. E. (Taiwan) Jingdu Yang Sheng Tang N/A Pharmaceutical Co. 5mL Oil. Ltd. CZ20030001 N/A N/A BZC20000020 BZC20000019 Z2003012 Z2003011 Z2003010 Z2003004 Z2003003 Z2003002 Register No. 10cm x 15 cm Water pill. 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.. (Hong Kong) He Xing Bai Hua You Co... 70mL Oil. Lingnan Pharmaceutical (Hong Kong) Co. Ltd. Hong Kong Huang Dao Yi Pharmaceutical Co.. 25mL/bottle Oil. 20mL/bottle Oil. Ltd. 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. The price for Jiu Xin Da (a kind of drug for heart attach) from Japan is RMB131/20 pieces. Z2003001 60 . Ltd. Yu Ren Sheng (Hong Kong) Co.. Hong Kong Huang Dao Yi Pharmaceutical Co.3 g Oil.
Product Target To screen 20 qualified Formulated TCM with clear therapy mechanism. controllable. It is reported that China will culture 20 modern Formulated TCM within 5 years. on their quality standard. China will research on 71 kinds of TCM. new equipment. large social demand. China will put one or two excellent TCM composite to enter the international market. 3) The research on the refined granule of TCM. easy usability. The sales of Formulated TCM will be RMB80 billion per year. production technology. stable. 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%. new product and the research on the TCM biological technology. to ascertain the active component. And China determine to share 15% of world herbal market. equality. new technique. The percentage of Formulated TCM among the total TCM exported will increase. relatively simple constitute and modern characteristic. action. 4) The research on the preservation of raw source and on the multiple utilization of resource. 5) The research on the TCM production technology and product quality. China will formulate research rule of refined granule of TCM in the Ninth-Five-Year. clinical equivalence. effective. At the same time. 61 . 2-3 Formulated TCM will enter the international market. During the Ninth-Five-Year. new preparation. to start systematic research on the quality control of raw materials. quality control. etc. 2) The research on the standardization method for Formulated TCM China will choose 5 TCM composites which have definite action. and other good specifications like safety. stability. 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. active part of TCM. preparation technique. This task is to be finish via researching on the mounting technique. 6) The research on new technology. in order to set up the measuring method and differentiating method. to set up database of standard TCM.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. 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. new auxiliary. safety and clinical evaluation.
and to make further research on the processing technology and the quality of concentrated Chinese herb granule. Target for Enterprise To culture 5 large enterprises with annual sales value of RMB 3 billion. 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. More research will be conducted toward it. processing technology. Excessive exploitation. Thirdly to enhance and consummate the standard for Formulated TCM by reference to the oversea experience in the development of natural pharma. Thirdly the enterprises of Formulated TCM are encouraged to set up traditional medicinal 62 . collection etc. collection. the standard should be formulated and executed for herb plantation. At the same time. better protection and utilization of licorice. especially in the major production areas of traditional medicinal materials by introducing the advanced plantation technology and biotechnology. At the same time. Secondly to consummate the processing standard for concentrated Chinese herb granule. digging. ephedra is important. so that to improve the quality of the traditional medicinal materials. 10-15 large enterprises with annual sales value of 1 billion. home-breeding and substitutes.Technology Target To form technology innovation system in each enterprise. For some large-scale enterprise. The fingerprint technology for the quality control of Formulated TCM should be promoted. Promotion of the Industrialization of Traditional Medicinal Materials Firstly to promote the standardization and industrialization of the plantation of traditional medicinal materials. At last to establish the national standard for concentrated Chinese herb granule. modern biological technology is recommended for the screening of the good seeds. At the same time. In the western area. Secondly to protect the wild medicine resources by introducing the home seeding. 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. to set up R & D center and the investment of R & D will be 5% of the total sales value. especially on the research of metal content and agrochemical residue. The central government will support the construction of seed gene database.
Thirdly to development new Formulated TCM to supplement the supply shortage of modern pharmaceuticals. The programs of the research were chosen based on the submitted proposals from local government. The traditional drug with definite actions. especially in the field of technology innovation. there are 70 projects listed in the new drug development plan in the TCM industry. At last to fasten the reform on the forms of the Formulated TCM by referring to the success of chemical synthetic pharmaceuticals. The development on advanced technology and new exipients are encouraged. by inheriting the ancient technology. The development plan will focus on the following areas: first class new drugs and second-class development with Chinese intelligence property. Fourthly China central government encourages the industrialization of herbal extraction. At the same time. drop pills. The new form of Formulated TCM that can best perform the function of the TCM will be developed. On base of the existing concentrate granular technology. Second to fasten the secondary research and development on the existing good TCM products. the new types of concentrated Chinese herb granule should be developed. 63 . standardization and mass production. etc. After serious screening. micro pills. The process and quality control should be standard and the test should be modern. SDA launched the plan to develop new TCM in China.materials base or even set up the first workshop in the production area of traditional medicinal materials. especially for such preparations as coating for TCM. Encouragement on Formulated TCM Industry First to set up effective. The recipe of these drugs are usually describe by the famous and old doctors in the ancient time. accurate and fast evaluation method and index system for the effective component. On base of the traditional concentrated Chinese herb granule. the advanced technologies such as soakage and drying. combining the modern technology and referring the international experience on natural pharma. 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. D: Some National Plans In June 2002. 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.
there will be 5 large TCM enterprises. each with annual sales value of RMB5 billion. To formulate and consummate the standard of TCM in China. 20 engineering centers and 10 industrial bases for TCM production. State Economic & Trade Committee issued The Development Compendium for TCM in the Future.- The formulations that are described and processed within some famous TCM schools in China. The four development strategies include: To set up new systems for modern TCM in China To establish 2-3 state level TCM research labs. In Nov. According to this plan. To develop new drugs with definite functions 64 . The secondary development & exploitation of the famous and traditional drugs. And there will be 10 large TCM enterprises. each with annual sales value of RMB 3 billion. 2002. by 2010. 10 TCM R & D centers.
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
In addition to the research on GAP plantation.II. dragon blood. The major areas for the traditional medicinal materials are Hanzhong area where there are about 1. Coptis Root . Sichuan province also conduct research on the standard plantation of 30 species of traditional medicinal materials. rosa banksiae Shaotong: Tuber of Tall Gastrodia . dwarf lilyturf tuber. lamp flower. Tuber of Tall Gastrodia. During the ten-five-year period.Sichuan Sichuan province has plentiful nature resources for TCM. Etc.And they have finished the draft of GAP oncordate houttuynia. They also draft GAP standard for Danshen.600 kinds of traditional medicinal materials. .Yunnan Yunnan province is famous for its vast resource of natural herbal. Cantonese fingered citron. So far they are success in the plantation of Tuber of Tall Gastrodia. 67 . yew. has started up the research on the standard plantation of amount fruit. Sichuan province started up the plantation bases for the TMC. Their aim is to reduce the reliance on the natural resource and develop the plantation mode for the traditional medicinal materials production. Danggui. Now Sichuan has set up 37 plantation bases for 30 species of traditional medicinal materials. Asiatic cornelian cherry fruit. Appendix II-1 Brief Introduction to the TCM Industry in Some Important Provinces . grifola umbellata. eucommia bark. polyphylla rhizome paridis.Shaanxi Shaanxi has plentiful herb resource. It is reported that the output of Tuber of Tall Gastrodiain Shaanxi Hanzhong accounts for 60% of the total output in China. There are three large plantation bases of traditional medicinal materials in Yunnan province: Xishuangbana and Dehong: focus on amomun fruit. large head atractylodes rhizome. cardamomum Wenshan: Sanxi Chuxiong: tuckahoe (Indian bread) Lijiang and Dali: Chinese Angelica. muskiness. rhubarb vine. grifola umbellataaccount for 50% of the total figure in China. Now Shaanxi Hanzhong is the plantation base of traditional medicinal materials in Shaanxi province. bitter galingal. So the local government develop a mode of “company + production base + peasant” for the plantation of traditional medicinal materials. bear gall. Guangdong province has successfully cooperated with some universities and research institutes to set up the GAP industrial base for common andrographis. rhizome of Sichuan lovage. In as early as 1980s. while the plantation area and the output of eucommia bark. etc. which are based on the 8 supporting items. yew. . The famous herbs are: Tuber of Tall Gastrodia.Guangdong Province Guangdong province.
And they will set up three major production bases of TCM in Hanzhong.chrysanthemum.. Guizhou province will support five production 68 .Hebei The main areas of traditional medicinal materials in Hebei province is Anguo city.. . 8 of the TCM enterprise have annual sale value of over RMB200 million. dahurian angelica root and Danshen root.600 individual families living on this business. The major items in Hebei Anguo are ladybell root. In the next ten years. there are many large TCM enterprises in Zhejiang province like Zhejiang Chiatai Qingchunbao Pharmaceutical Group. 10% and 10%.. In addition. The annual output of traditional medicinal materials in Hebei Anguo is 30. eucommia bark.白术 large head atractylodes rhizome. Jiangsu Kangyuan. Jiangsu Yangzijiang Pharmaceutical Co. chrysanthemum. Zhejiang Huqing Yutang Pharmaceutical Co. radix asparagi.700 hectares. etc. In the modern research approach. Amongst the TCM producers. The major species of traditional medicinal materials include Tuber of Tall Gastrodia. . 25%.Jiangsu Now there are 120 new drug (TCM) licenses in Jiangsu province.Zhejiang The famous traditional medicinal materials in Zhejiang province include fritillary bulb. topaz.000MTs. Ltd. cassia twig tuckahoe (Indian bread)capsule. tuber fleeceflower. including Jiangsu Shanhe.Inner Mongolia Inner Mongolia is famous for the ephedra and licorice resource. astragalus. phellodendron bark. .300 hectare plantation base of ephedra. ginkgo biloba leaf. The Miaoyao is the famous native medicine in Guizhou area. . including Mai Luo Ning injection. accounting for 70% of the total output in Hebei province. evodia fruit. respectively of the total output in China. By 2001. So far there are over 1.Ningxia Ningxia is famous for it ephedra and medlar.100 mills to process the traditional medicinal materials and there are 8. boiling. Shaanxi province will invest RMB50 million/year at least in the development of TCM industry. Tuber of Pinellia.In the next five years. dendrobium stem. as well as on the cassia twig tuckahoe (Indian bread)capsule. is the largest one with annual sales value of over RMB2 billion.Guizhou Guizhou has profound resources of herbs. Ltd. polygonum capilalum. ladybell root. Jiangsu Suzhong. There are 12 big TCM items with annual sales value of over RMB50 million. Ltd. and Zhejiang Kangenbei Pharmaceutical Co. The output of these four items accounts for 80%. the number of plantation TCM in Hebei Anguo is 223 and the plantation area is 8.. . Ankang and Shangluo. The famous Miaoyao include epimedium herb. Now Ningxia province is building the 1. . corydalis tuber. Jiangsu take major role in the research on standard plantation of ginkgo biloba.
The famous TCM enterprise in Guangxi province include Guilin Jiqi Pharmaceutical Co. each with plantation areas of 1.508 species of traditional medicinal materials in Anhui province. The famous traditional medicinal materials species include hairy deerhorn.bezoar. eucommia bark. polygonum capilalum. The total plantation area is over 100. According to the plan for 2010. There are 34 TCM enterprises in Hunan province.110 kinds of herbs in Hainan province. seadragon.Hainan Hainan province is an important production base of Nanyao.seahorse. 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. Guizhou Yikang. hawksbill. . chrysanthemum.000 hectares. . Guixi Pharma and Wuzhou Pharma. Ltd.000 hectares. The major traditional medicinal materials are White peony root. 241kinds of them can be found in Hunan province. pearl. . Guilin Sanjin Pharma.384 kinds of traditional medicinal materials in Hunan province. abalone shell.. coral. pawpaw. clamshell.bases of traditional medicinal materials. large head atractylodes rhizome. It is reported that there are 3. bird’s nest. The total reservation of traditional medicinal materials in Hunan province is 12 million MTs. The industrial revenues of TCM industry by 2005 and 2010 will reach RMB6 billion and RMB15 billion. The plantation area of traditional medicinal materials is 34. Guizhou Yibai.sea snake. oyster. pangolin.. Now the big industrial chains are Tuber of Tall Gastrodia. . sea pumpkin.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. .Anhui There are 2. Guizhou Xinbang. amber. a category of traditional medicinal materials grown in southern China. The famous TCM enterprises in Guizhou include Guizhou Shenqi.300 hectares at least. The famous species are eucommia bark. 69 . Among the 363 important traditional medicinal materials in China.Hunan There are 2. phellodendron bark.
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 . There are six big traditional medicinal materials plantation bases in Chongqing city which are built by the following enterprises: .8 billion.Jilin There are 2. asarumasarum. The total reservation is 188.000 hectares. .000MTs.116 species of traditional medicinal materials in Shanxin province. frog oil.000 hectares. Now many famous TCM enterprises have set up GAP plantation bases in Jilin province. The output value of traditional medicinal materials in Jilin is RMB1. the plantation area in Chongqing city is 260.500MTs/year) and Tang-shen(3.000MTs/year).. acanthopanax root. The major items of traditional medicinal materials are (2.Shanxi There are 1. hairy deer horn.Chongqing By 2002. The major items are ginseng. The present plantation areas of traditional medicinal materials in Jilin province is 33.790 species of traditional medicinal materials around Changbaishan area. rough gentian.
The major plantation areas 71 . Fritillary bulb Too much plantation and enough supply in the market. However its price has been high recent years.000MTs. Cowherb seed Not large supply but it seems that the application areas have been enlarged.000MTs. present.000-30.000 hectares. Business is not clear for the next years. Lily Too much plantation it the past years. Danshen The annual plantation area of Danshen is 60. 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. Balloon root The demand and supply is equal. Peach kernel Production has been shrinking in the major output area due to various reasons. But Recent years it is not allowed to collect the wild licorice and it needs license to the do business of licorice in China. The annual output is 20. The annual supply quantity is about 3. However it seems that the plantation licorice is a good item in China. Dahurian angelica root It is one of the largest traditional medicinal materials items in China. Figwort Total demand in China is 4.500MTs/year. It is oversupply in China. The production scale is enlarging.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. Anemarrhena rhizome Not a good item but with enough supply.
The ginkgo nut production in Jiangsu province is the largest in China. Chrysanthemum The demand in China for this traditional medicinal materials is 1. The major plantation areas are Shanxi.include Sichuan and Anhui. accounting to about 90% of the world production. The total plantation area of ginkgo biloba in China is around 200.800MTs. Ginkgo Biloba The Chinese people plants ginkgo biloba 4. The total production of ginkgo Leaves in China is estimated at over20. So the price is not stable either. Shaanxi Hanzhong. The output of ginkgo nut is 12. The quality of Sichuan dahurian angelica root is better than that of in Anhui. accounting for 90% of the total production in the world. Inner Mongolia. The annual output is about 10.200 hectares in China.000 years ago.000 MT. Large head atractylodes rhizome The annual output of 白术 large head atractylodes rhizome is 14. Common fennel The plantation area in China is 4.000MTs. Ningxia.000 hectares at present.500-1.000 hectares. Shandong Province.000MT/year.000MTs per year. etc.000-4. 72 . Henan Province and Zhejiang Province. The output of dahurian angelica root in Sichuan is 3. There are 46 kinds of ginkgo biloba species in China. The annual plantation area is 8. Gansu. ginkgo plant distributes mainly in Jiangsu Province.000MTs. The major plantation area is Zhejiang province. In China. the output is subject to the climate and is not stable. As it is available in the wild climate. The biggest seed raising base in China is located in Shandong Laizhou.
This report is only a general market survey aiming to illustrate what is TCM industry.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. present and future. past. Should additional areas of interest have been revealed to xxxx following this 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. 73 . 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.