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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
Now they are developing new types like drop pill and injection. Traditional Medicinal Materials (TMM) China is profound in TMM resources. etc. description.000MTs. The annual output of formulated TCM is 150. processing of concentrated Chinese herb granule and research on Formulated TCM. 1. The annual export of TMM is around 150. test. China shares much less market in the international market comaparing with Japan and South Korea. There are total about 12. the three most important sections are screening & planting of traditional medicinal materials. China is strong in the export of TMM just because of the low price.000~200.Executive Summary In the TCM industry. The major reason is that China lacks of standard system to ensure the production.581 species of medical animals and 80 medical minerals. However there is a long way to go for Chinese formulated TCM to have competitive position in the world market.000MTs. Althought China is the origin country for formulated TCM.000MTs. However China lacks of efficient system to ensure the TMM availability continuability and to ensure the product quality. The formulated TCM has rooted to the Chinese people as a convenient and cheap way in the actual therapy. application and promotion of formulated TCM.146 species of medical plants. More Chinese large TCM companies are conducting GAP program to ensure the TMM availability. 4 . including 11. The export of Chinese formulated TCM has been maintaining at the level of 40. China has been producing over 40 forms of formulated TCM. Formulated TCM China has long history in the production.807 TCM species in China. And central government encourages the plantation of TMM.000MTs/year. Chinese research and modern approaches to formulated TCM is governmental encourage and is aggressive. The annual output of TMM is around 400.
Traditional Medicinal Materials Natural resources. and sold thereafter. technology. to make medicine and sell in form of pill. tincture. In recent years. . They include published magazines. journals. for directly intake or eat with water. with certain function in treating disease. industrial statistics. The aim of this report is to provide basic understanding on the traditional Chinese medicine. concentrated Chinese herb granule. the Chinese manufacturers have developed the concentrated Chinese herb granule.26 RMB 5 . powder.Formulated TCM It is the medicine that people around the world have been referring to for centuries. Throughout this report we discuss the TCM industry in the following sections: Traditional Medicinal Materials (TMM) Formulated TCM or patented TCM Herbal extract Glossary .Methodology The sources of this report are various. However we include the information of this sector for reference and comparison. In fact the herbal extract should not belong to TCM. Internet. government statistics. etc. 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. export. fabricated under simple physical condition without further processing. like drying under sunshine. a kind of Formulated TCM without boiling and usually for instant intake. which is processed by boiling. It is made from traditional Medicinal materials. raw materials. we discuss it within the Formulated TCM sector. customs statistics. consumption. especially herbs. more and more Chinese factories began to extract active ingredients from the traditional medicinal materials or some natural herbs by using the western technology. etc. extraction. Herbal Extract In the recent years. etc. so that to understand the competitiveness of Chinese TCM industry. The information of this report is dated to August 2004. Note: 1 USD = 8. from such aspects as production. traditional medicinal materials.. In the present report. Consecutive market monitoring on the situation of traditional Chinese medicine has been conducted from 1997 to 2004. grows in Chinese territory.
I-1 Brief Introduction to TCM Industry in China I-1. coptis root. especially in the 1980s and 1990s. and archeological discoveries suggest the origins of TCM may stretch back at least 5. radix platycodi. Prior to twenty century. and promotion around the small villages. boiling & processing. honeysuckle flower. thunberg Fritillary. glutinous rehmmania. lactiflora peony root. storage. 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. They successively solved the problem of culturing technology for such herbs as coptis root. For a long time in the history. These herbs are called traditional Chinese medicine (TCM).500 years. research support. eucommia bark. etc. the TCM production in China is characteristic for the family-mode. All the function and recipe is described on base of the past experience of folk healers or practioners. it also covers animals.000 years to the age of Sheng Nong. Chinese people hold the idea that the action of TCM is composed of several elements within TCM. corydalis tuber. Chinese agelica. Chinese researchers have put effort to introduce the plantation technology of traditional medicinal materials. There is no quantitative data in evaluating the affect and result of TCM. saffrom crocus. Chinese globeflower. licorice. radix glahniae. lycium. The earliest written records of TCM date back 3. tall gastrodia. medicinal evodia. Some of these TCM has 6 . American ginseng. All herbs used to make TCM grow under nature climate. Dan Shen. In the past there is no organization to engage to the mass production. mostly for water boiling. ginseng. The China government put a lot of capital and effort in developing and exploiting this thesaurus. mass commercial production involvement and long term plan design. which cure the disease in a synergetic way. grifolla umbelata has been applied in the commercial production. So far there are still tens of thousand of families around countries in China living on the technique inherited from their ancients. Chinese people treat herbs with simple process. Nowadays the scope of TCM not only limited to herbs. American ginseng. There is no chemical method to extract the active parts. or the research on TCM. In fact they have conducted all the procedures from herbal collection. including education & training support.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. poeny. honeysuckle flower. The mass commercial production of TCM began after the foundation of Peoples’ Republic of China. Since 1960s. and the extracts from these products. Any separate element will lost function if it is excluded from other elements in the TCM. All the activities on TCM were carried out by unorganized civilians. Later the plantation technology of tall gastrodia. safflower. astragali. the TCM is characteristic for the following facts: There was almost no systematic plantation of herbs. marine good. In the past centuries.
the total sales of traditional medicinal materials in 2003 increases 25-48% over that of 2002. It can be said that SARS in China reactivated the Chinese market of TCM. has got FDA clearance for clinical trails. 900 million and the production output is 200. 7 . In the 1990s. Compound Salvia Drop Pill made by Tianjin Tasly Pharm Group. Many peasants suffered a lot from the herb plantation and lost confidence. the amount of households specialized in the production of TMM is over 340. the business of TCM grows gradually and stably. The business of traditional medicinal materials increased significantly. over-the-counter (OTC) medicines and new drug applications. In December 1997. there was a rush wave in China to plant traditional medicinal materials. the TCM industry formed in China. During 1980s. Later another product. In the same year. From the investigation on the 17 major trade marts in China. 21 Chinese-made herb products received US marketing clearance as food supplements. The weak traditional medicinal materials industry lasted till 1995. herbal supplements. 124 TCM pharmaceutical factories have been recognized as big. In the same time.000 hectares. Some large enterprises were set up. more and more Chinese peasants. Some factories and workshops have come up to the GMP standards.000. Following the development of rural side.. honeysuckle flowers is even ten times that of before). There are 500 kinds of medicines in over 40 different drug forms. there are over 800 TCM plants and 13.000 farms specialized in production of traditional medicinal materials (TMM). It is reported that many of the TCM stocks had been sold out overnight. The TCM industry increased in both production quantity and species number. At present. basket fern.line production and diversified economy. dietary supplements. the FDA approved the first complex formula TCM product.or middle-size state enterprises. Following the price roar up since March 2003 (The price of some species like hurricane lamp. The annual total output value is RMB13.become the main income for the local government and the local people. Food and Drug Administration of USA (FDA) allowed herbal products to be promoted in the USA as health food. for clinical trial application in cardiovascular disease. But subsequence to this rush plantation wave is the dramatic drop of the price of traditional medicinal materials. ginkgo extract from Shanghai. It is only since mid 1990s that the TCM industry began to go up. with a total planting area of over 348. As a result. under the encouragement from local government. went into the TCM plantation business. 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. 1 For a long time in the history. In 1997. In the early 1990s. the SARS sweep in China arose the attention to the TCM.000MTs. However in 2003. the Chinese manufacturers began to introduce new and update technology from western & developed countries.
490 2.470 % 2000 % 2001 % 2002 % 2003 56% 51% 46% 52% 34% 31% 35% 30% 0% 9% 8% 9% 4% 2% 2% 0% 1.233.30 0 7.646.000) 2003 163.350 3% 100.830 1.Traditional Other Biopharm pharmace Sanitary aceuticals uticals 10.520.014.400 8. 8 .770 385.940 12.060.640 7.440 5.920 % 2001 % 2002 58% 53% 25% 28% 0 5.548.330 75.420 132.000) 2002 56% 26% 8% 0% 504.96 290.377.620 18.370 1.450 14.010 69.570 1.1-1 Position of TCM industry in the whole pharmaceutical industry in China Pharmac Industry Chemical s .462.337.571.500 19.870 Sales revenu e (RMB 1.550 7% 815.170 987.100 233.330 21.803.510 5.100 184.108.40.206 0 0 100% 100% 2.870 2003 14.830 5.482.887.519.610 17.760.840 660.944.956.082.280 4.478.410 273.490 24.740 2% 2% 7% 8% 0 0% 0% materials Medical appliance eutical machiner ies Total 212.912.490 297.070 1.850 1% 100% 7.810 32.230 26.30 0 5% 5% 3% 3% 8.Table I-1.190.733.962.335.890.616.576.99 0 245.023.890 52.143.250 14.510 38.840.162.620 2002 129.302.003.471.560 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.41 2001 122.840 919.896.87 Section pharmaceuti Chinese cal industry medicine % 2003 2000 2001 Profit (RMB 1.010 9.210 22.675.040.
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.
broomrape rhizome of Sichuan lovage. plantain seed honeysuckle flower. resurrection lily rhizome dahurian angelica root. Tuber of Tall Gastrodia. ephedra dendrobium stem. patchouli. fritillary bulb. common andrographis Sanchi. rose flower Danshen root Table I-2. phellodendron bark Sanchi. Tang-shen rhubarb. bitter orange.川乌 prepared Sichuan aconite root. homalomena rhizome. honeysuckle flwoer. Cantonese fingered citron. rehmannia root. chrysanthemum. astragalus. radix asparagi amomum villosum lour. blue shell. notoperygium root alkanna tinctoria. mongolian snake gourd common yam rhizome. rosa banksiae. dahurian angelica root. muskiness licorice. licorice. fritillary bulb. aweto. chrysanthemum tuckahoe (Indian bread). licorice Ningxia Hebei Jiangsu Zhejiang Anhui Jiangxi Shandong Henan Hubei Hunan Shaanxi medlar. asafetida. Coptis Root . safflower. Chinese magnoliaving ginseng. schizonepeta spike ginkgo biloba. hairy deer horn Inner Mongolia astragalus. Chinese Angelica eucommia bark. arge head atractylodes rhizome. root-bark of peony.1-1 Major TCM species and their distribution in China Location Sichuan Guangdong Yunnan Guizhou Heilongjiang Jilin Major items rhizome of Sichuan lovage. fritillary bulb.dwarf lily turf tuber. fritillary bulb. pubescent angelica root figwort. Isatis root gardenia. morinda root. chrysanthemum corydalis tuber.Table I-2. bupleurumstellaria root Chinese Angelica. magnolia bark. Coptis Root . ephedra. hurricane lamp. dendrobium stem rough gentian. Tuber of Pinellia . prepared aconite root. evodia fruit fragrant solomonseal rhizome. herb of virgate wormwood. ladybell root. pawpaw 12 . epimedium herb. coix seed peony. tsaoko cardamon. cassia. hog fennel root. tuckahoe (Indian bread) evodia fruit. eucommia bark oriental wormwood. balloonflower. rosa banksiae.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. ephedra aster. achyranthes root.
trader..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. This situation is still the major bottleneck for the development of TCM in China. At the moment. I-2. 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. identifying the qualified species of traditional medicinal materials. collectors. breeding. Ltd..3 Plantation Base of Traditional Medicinal Materials In order to solve the problem of supply continuability.3-1 some production bases of traditional medicinal materials in China Sponsor company Sichuan Dikang Pharmaceutical Co. the market information among the local peasant is not workable. screening. some are even frustrated by the fluctuation. The total plantation area is 400. Guangzhou Baiyunshan TCM Factory Yunnan Wenshan Sanchi Medicine Co. By 2002. Sichuan Zhongji Industrial Co. the judgment for the qualified traditional medicinal materials has to resort to the naked eye. which consumes large quantity and requires production of traditional medicinal materials. At last. Ltd. Secondly. which means the local peasants have to suffer from this.. China is weak in the standardization of traditional medicinal materials. Table I-2. There is not standard for the plantation and the test. Thus the plantation and price of traditional medicinal materials fluctuate much. the Chinese people started to set up numerous of plantation bases. As a result.000 hectares.I-2. the metal content and agrochemicals residue in the traditional medicinal materials is still an outstanding problem for Chinese product. the exorbitant exploitation of the TCM resources ever-contaminated environment make the diminish or disappear of some wild TCM species. consumers is not effectively. Species rhizome of Sichuan lovage Danshen root common andrographis Sanchi Location Sichuan Sichuan Guangdong Yunnan 13 . In addition. Thirdly. China has set up over 600 plantation bases for traditional medicinal materials . the communication among the peasants. especially the Formulated TCM. Ltd. which means the small scale and outdated production facilities. This is also one of the major obstacle for the continuous development of TCM in China. in such areas as seeding.
belamcanda rhizome.. common yam rhizome. Isatis root. mongolian snake gourd. homalomena rhizome.astragalus. gallnut.. ginkgo biloba.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.4 Governmental Encouraged Traditional Medicinal Materials Items in China In Oct 2003. SDA listed 39 kinds of traditional medicinal materials as especially encouraged items of TMM either for plantation or for exploitation of commercial value. Ltd. Coptis Root . Ltd. Ltd. Ltd. achyranthes root. dendrobium stem.2 Factory Inner Mongolia Ruian Grassland Eco-economy Base Shanghai Medicine Corp. Tianjin TASLY Group Xi'an Tiancheng Pharmaceutical Co. fresh-water turtle shell. 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.. Anhui Huaibei Mineral Bureau Forestry Department Beijing Tongrentang Medicine Factory Hunan Zhangjiajie Pharmaceutical Factory Hunan Aidisheng Micro-alga Co. asafetida. They are: . Shanghai Agriculture & Industry & Commerce Group Jiangsu Gingkgo Bio-chemical Group Zhejiang Kanglai Pharmaceutical Co. Tuber of Tall Gastrodia. Ltd.safflower. dodder. Ltd. barbat skullcap. Guangsu Dingxi Agriculture Research Development Center Qinghai Jingzhu Tibet Medicine Co.. phellodendron bark. medicine Chinese date.. centipede. tsaoko cardamon.. eucommia bark. ear dust of yellow croaker. gadfly. Ltd. Zhejiang Tianhuang Natural Growth Co. frog oil. swimming bladder. safflower. 14 . Ltd. chastetree fruit. dragon’s blood. bupleurum. Tibet Hongjingtian Development Co.. alismatis rhizome. ephedra I-2. Ningxia Yingchuang Natural Products Co. Harbin TCM No. ebony. asarum. magnolia flower. fritillary bulb. magnolia bark. lilac. balloonflower..
the China government promotes the GAP mechanism among the Chinese TCM enterprises. there are 149 GAP bases for traditional medicinal materials production. Here are some modes for the GAP operation: Formulated TCM enterprises + Research units + Plantation bases + Peasants/employees Commercial companies + Research units + Plantation bases + Peasants/employees Companies + Research units + Plantation bases + Peasants/employees Research units + Peasants/employees 15 . In this practice. the 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.5 Operation Mechanism of GAP for Traditional Medicinal Materials GAP: Good Agricultural Practice of Medicinal Plant & Animal Since end 1990s.I-2. By 2004.
107 factories of Formulated TCM producer to produce about 40 categories of various Formulated TCM including pill. The total export value of TCM is USD589 millions. In 2000. while it was only 60-67%% in the 1980s. there are 1. Characteristics of Formulated TCM in China The items that have fame and special functions are still popular in the international market.000MTs.059 Formulated TCM factories in China.91 billions.360 Total commercial station for TCM amounts to 35. among the consumption of TCM.94 billions. In 1998. Formulated TCM accounts for 73% of the total TCM. The total production value in these factories is RMB12. Some statistics of TCM industry in 1996: The total asset value: RMB13. including USD463 millions of traditional medicinal materials and USD 135 millions of Formulated TCM.54 billions. aerosol. The total output of Formulated TCM in 2001 is 300. there are 1. etc. The sales revenue and the net profit are RMB44.5% of total production value of TCM in China. But most of them are small in size. the total industrial value of Formulated TCM is RMB48 billion. injection.000 specifications. accounting to about 21. Certificated organizations to do TCM business legally: 11.069 billion. with nearly 8. tonics.339 There are 470 TCM species with production value more than RMB5 millions and 21 species with production value more than RMB100 millions.000 MTs.34 billion Total production value is RMB23. The total industrial value of TCM industry is RMB60.6 billions. China can produce about 50 formulations of Formulated TCM.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 2001. There are 8. accounting to 53.I-3 Situation of Formulated TCM in China I-3. anti-affection.000 specifications and the annual output of Formulated TCM reaches to 370.7% of the total industrial revenue of medicine industry in China. In early 2000s. The profit after tax is RMB1. respectively. accounting for 21. The total production of TCM preparation is 199. These Formulated TCM include afrodyn. There are 182 medium to large size TCM factories in China. 16 .9 billions.5% of the total medicines in China (including western/chemical medicine) Sales value of TCM in 1996 was RMB21.000MTs.6 billion and RMB4.
Chinese materials have been either rejected or lowered in price. The agrochemicals or poisonous chemical remained in the TCM becomes an important issue for the export. Those that are protected by the central government are popular in the market. The management on the TCM culturing and the processing technology is not standard. There is not standard for the preparation of Formulated TCM. 17 . so lead to the out-of-control of the TCM and the bad quality of the products.Tonics and the healthcare products still dominate the market and their sales keep increasing. The price of Formulated TCM kept increasing. The natural resource for the TCM has been exploited irrationally. which makes Chinese material less competitive to oversea materials. 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. or plantation of TCM has a relatively short history but the plantation technology is out of date. The culturing. So the quality of cultured TCM is not stable. There is not comprehensive standard to test and ensure the product quality. Problems for the Formulated TCM The traditional grown TCM still domains the production style.
737 69.298 16.324 36.660 447.089 203.809 49.353 51.058 514.505.Table I-3.422 144.844 2002 34.087 60.436 2.713 927 1.658 16.011 109.583 1.1-1 Capacity and output of Formulated TCM in the past years (Unit: MTs) No.530 79.429 83.025 127.675 70.920 927 1.391 11.869 60.272 261.789 26.716 188.490 78. 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 26.856 2.803 159.472 68.245 11.643 20.969 2.830 30.518 11.526 38.391 6.767 107.117 12.657 57.527 2.576 4.798 108.280 61.099 40.643 155.429 73.859 110.657 99.894 3.691 214.102 114.563 453.236 38.396 5.771 38.842 184.804 48.264 10.123.348 6.396 5.119 45.147 3.735 1.081 4.243 6.465.285 16.016.127 41.659 4.480 53.148 20.964 48.978 118.820 8.021 2001 29.575 26.909 14.120 5.497 7.376 16.780 11.440 18.047 8.789 275.411 1.372 1 honey pill 18 .738 33.018 59.149 25.717 51.421 25.877 178.447 40.770 924.046 4.248 1.826 2.328 37.823 88.786 2000 35.726 36.953 338.911 10.919 6.990 89.017 1.867 94.286 47.205 190.618 106.526 3.344 10.594 12.197.000 3.243 66.531 109.900 78.310 38.
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%
640 0.170 1.500 4.19% 166.45% 2.600 4.25% 2.42% 605.320 5.620 2.583.465.33% 36.02% 3.06% 87.1-3 Sales revenue of Formulated TCM in different provinces in China (sequence based in 2003).711.500 0.194.660 3.360 4.69% 3.88% 2.400 100% I-3.162.840 1.530.930 1.260 2.52% 1.31% 1.995.030 7.790 1.290 1.670.64% 606.240 2.961.10% 2.85% 1.28% 761.270 1.920 1.580 1.24% 753.440 5.790 1.370 3.240 4.12% 151.113.975.407.290 8.48% 11.31% 1.730 0.217.760.660 3.731.630 1.824.920 8.69% 2. (Unit: 1.70% 4.389.21% 5.870 0.93% 70.360.480 0.072.400 0.533.330 1.730 15. 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 20.160 0.79% 1.670 1.350 5.370 1.65% 11.287.790 0.04% 2.585.170 2.766.445.380 4.500 0.88% 5.290.21% 542.88% 3.11% 7.66% 852.720 4.660 7.590 8.98% 1.160 0.580 1.900 100% 69.130 4.500 0.13% 2.26% 729.43% 1.229.060 2.62% 2.041.42% 2.810 0.53% 2.188.52% 1.520 3.130 0.586.745.060 1.334.019.790 0.584.603.400 6.56% 4.577.82% 4.974.575.680 2.260 1.420 2.942.340 3.88% 1.187.53% 8.69% 4.930 5.34% 14.780 0.20% 3.913.850 0.18% 1.37% 882.770 2.39% 256.09% 1.17% 58.49% 14.48% 51.70% 3.480 0.62% 269.48% 225.024.409.950 1.27% 4.68% 1.450 18.25% 1.273.19% 250.550 0.81% 529.10% 257.102.280 4.11% 1.359.440 8.280 6.72% 3.840 3.940 0.212.030 3.048.800 0.304.67% 319.682.491.12% 836.33% 2.440 2.390 5.000RMB) 2003 No.130 6.120 6.37% 2.43% 8.11% 251.2 Introduction to Concentrated Chinese Herb Granule Problems for the Concentrated Chinese Herb Granule Production in China 20 .19% 1.06% 1.Table I-3.64% 1.38% 384.741.80% 1.770 100% 133.699.07% 216.83% 2.130 10.440 0.02% 3.64% 1.910 10.940 2.200 0.506.830 0.12% 1.945.68% 2.430 0.590 2.137.363.54% 12.100 4.96% 1.02% 1.46% 583.450 0.78% 716.757.260 1.54% 523.12% 1.32% 1.070.06% 38.167.510 3.903.959.140 11.65% 4.20% 692.824.030.090 1.799.649.
000 above-mentioned species.000 of them comply with the state drug standard. B: Another problem is that the product quality of concentrated Chinese herb granule is not uniform. Because there are many illegal manufacturers in the market. 21 . Most of these manufacturers locate in Beijing. 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. The production of concentrated Chinese herb granule has been shrinking. especially the different between concentrated Chinese herb granules. also some manufacturers add impurities into the product and sell the product at the normal price. Many of the Formulated TCM have different name but in fact they are referring to the same goods. This brings much inconvenience to the license management for concentrated Chinese herb granule. The processing of traditional medicinal materials is not standard or professional. so far there is not clear and authentic definition on the term concentrated Chinese herb granule. In China. It is reported that there are about 26 kinds of formulations with nearly 10. the interest of the legal manufacturers has been greatly impaired. But only 5. Some traditional medicinal materials is not processed before they are promoted in the store. Also it is reported that there are some detritus in the concentrated Chinese herb granule C: In case of commercial circulation. there are about 700 manufacturers of concentrated Chinese herb granule in China.A: By 2002. the traditional medicinal materials are listed as byproduct of agriculture. Of the 5.000 species of products. two third were confirmed before 1985. There are many fake products in the market. Shanghai and Tianjin area. Some manufacturers still sell the poisonous TCM in the market that are forbidden to sell in China. And one third was confirmed after 1985 when China set up new method to evaluate the Formulated TCM.
46% 0.260 921.420 80.030 9.46% 1.110 2.59% 3.45% 4.170 2.21% 0.88% 6.620 9.31% 58.2-1 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 8.15% 0.49% 24.26% 10.700 8.96% % 2001 2002 34.570 11.09% 13.050 52.25% 10.64% 0.200 23.47% 14.85% 10.060 67.180 77.610 34.75% 0.93% 0.20% 0.250 96.280 2.970 58.64% 2.270 142.52% 3.66% 2.030 510 66.28% 1.830 75.Table I-3.19% 1.31% 7.840 90.580 12.42% 1.51% 1.42% 34.520 31.070 8.61% 0.06% 8.290 0.270 261.950 2.100 4.33% 35.35% 0.43% 1.570 40.500 16.680 76.86% 0.30% 9.56% 31.000 5.20% 4.950 2.75% 21.46% 7.820 24.17% 10.200 2.94% 100% 100% Table I-3.08% 3. (Unit: 1.83% 3.360 5.000 1.850 410 11.560 3.90% 58.39% 4.570 10.22% 9.480 .890 21.270 41.800 175.40% 6.94% 28.08% 0.120 20.2-2 Sales revenue of concentrated Chinese herb granule in different provinces in China (sequence based in 2003).000RMB) Sales revenue No.05% 1.78% 4.780 11.96% 0.38% 17.17% 6. 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 331.03% 2.13% 1.16% 3.44% 8.49% 0.250 28.20% 0.36% 35.45% 100% 4.13% 0.960 27.450 180.23% 0.100 79.88% 10.91% 18.860 7.77% 40.960 14.42% 21.670 53.950 83.46% 26.37% 1.
wine.130 2. etc.850 100% 100% 100% I-3. Another active producer of drop pill in China is Guizhou Huangguoshu Lishuang 23 . With the employment and industrialization of new technologies like super filtration.70% 0. Drop Pills Drop pills is made by dropping the solid or liquid pharma and its matrix. liniment. there were 9 kinds of drop pills including composite Danshen drop pill. capsule.48% 0.610 15. powder. etc. Now we introduce in brief some new formulations in China. 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 1990-1992.77% 0.470 559. etc. tea.44% 818. This form of preparation was listed in CP standard in 1977. into incompatible phase to obtain the solid form preparation for oral intake. the production of drop pills started from 1958. In China. powder injection.830 6. cream. supercritical extraction. after the mixture is melted. drop pill of daturian rhododendron oil. soup. tablet.205. gel. aerosol . Later in order to improve the absorption ability and to best embody the affective ingredient. some new types of formulations researched and produce like concentrated pill. boiling. some formulations were changed to oral liquid. injection.3 Brief Introduction to Some New Forms of Formulated TCM in China Traditionally there are about 40 kind of formulations including pill.25 Heilongjiang 26 Shaanxi 27 Liaoning 28 Jilin 29 Yunnan 30 Ningxia 31 Tibet Total 2.310 3.450 0. By 2003.69% 2. By 1995.900 5. paste.
Ltd. angina Anti-tumor Assisting drug for arrhythmia. 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 TCM injection development in China has not been smoothly. 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.Pharmaceutical Co..3-1 TCM injection approved to used in China in 1985-2001 No. relieving Year to approve 1989 Table I-3. Wuhan Pharmaceutical Factory began to produce TCM injection made from Chai Hu. Now there are 11 TCM injection and 8 herbal injections approved to use in China. Table I-3. TCM Injection The first TCM injection was found out in 1940. Anti-tumor Cerebrovascular disease Anti-tumor Year to approve 1993 1993 1993 1994 1994 1995 1995 1997 24 . that produces Yan Li Suang buccal drop pills. The major reason is that it is hard to control the quality of TCM injection. angina Anti-tumor Anti-tumor Anti-tumor Dysuria raised from hyperplasia of prostate Infection of the respiratory Preventing asthma 1998 1999 1994 1995 1996 1996 1997 Indication/function Preventing cough Anti-tumor Icteric hepatitis Infection of the respiratory 1989 1993 1994 asthma.3-2 Herbal injections approved to used in China in 1985-2001 No. In the past fifty years. That is why the SDA suspended the license of TCM injection in 1985-1990. Later in 1954.
000MTs resource of St. bilberry. So the total number of producers reached to nearly 300. E. China has about 4. E. Among some items that are popular in the international market. etc. In the countryside. ginger. green tea.920 22. St. etc.670 9. scopolamine. with no more than USD10 million.g. In addition. However the sales revenue in most Chinese producers are quite small. John’s Wort. Ginkgo is oversupply in China. gastrodine. 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. But for some unknown reasons. So far the Chinese researchers have extracted 400 species of natural active compound and their derivatives.000USD) % to the total TCM 1996 66. there are about 200 professional companies engaging in the production of herbal extract in China. 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.000 20. the herb medicine accounts about half the market. By early 2000s. over 60% people would like to use herb medicines to treat diseases. John’s Wort. centela (cat’s foot). for example. And there are over 500 kinds of herb medicine preparation.370 13. like berberine.937MTs of herbal extract in 1999. St. For many years. many are available in China but have not been developed to large scale as in the oversea countries. some Formulated TCM producer and even some fine chemical producers entered this market in end 1990s. tropine. Table I-4-1 Percentage of herbal extracts in the past years Year Value (1.I-4 Brief Introduction to Herbal Extracts in China Brief History In Chinese pharmaceutical market. tetrahydropalmatine corydalis. Some herb extract resources are over supply in China. There are about 800 kinds of herb medicines make from the affective parts of herb. these medicines have not entered the international market but been exported as raw materials. John’s Wort. 25 . By end 1990s.2 Entering 2000s. hop.7 1997 91. the herbal extract has not been developed fast until in 1997. garlic. In the past the Chinese scientists have developed over 40 kinds of new herb medicines.8 1998 115.g. valerian. indirubin. anisodine.4 1999 104.. a lot of herb extract manufacturers began to extract it and launch the extract into the international market.. China is plentiful in the herb resource but many resources have not been exploited successfully. It is reported that China exported 9.
huperzine .760 114.06% +31. In CP2000. resveratrol. China use the term grease or cream to replace the term of herbal extract. acanthopanax root. glossy ganoderman.000 54.ginkgo biloba.Major Technologies Here is the technology used for the herbal extract in China. because it is a new idea in China. catechin. Generally the herbal extract can be classified as follows: Single component extraction: like bitter orange.710 19. 26 . red clover. But in 2003.700 Increment over 2002.870 28.000 98. Composite component extract: Pu Zhong Yi Qi extract Active ingredient extraction or monomer compound extraction like soybean isoflavone.62% -17.77% Generally there are about 80 kinds of herbal extracts in China. % + 24.55% -5. magnolia bark. etc.54% -1. ginseng extract. 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.It should be pointed out that there is not the so-called herbal extract in the CP standard.000USD) 172. John’s Wort. St.18% +4. Chinese magnoliaving. astragalus. the export of herbal extract to South Korea and Singapore decreases. Chinese Angelica. caltrop.
soybean isoflavone huperzine-A Paclitaxel. ginkgo lactone High speed countercurrent distribution chromatography tea extract EGCG continuous counter-current extraction Supercritical extraction Freeze drying Micro encapsulation Enzymolysis green tea. aroma.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. red clover aroma oils. natural vitamin E Garlic extract Chinese Angelica and volatile oil resveratrol 27 .
283 TCM manufacturers in China. and one with annual sales of more than USD 1 billions by the year 2010. 28 . Beijing Tongrentang Group.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. Typical enterprises include Zhejiang Kangenbei Group. there were 1. Donge Ejiao Group. Zhangzhou Paizaihuang and Zhejiang Huqingwu Tang. By 2000 it is expected that there will be five companies with annual sales of between USD240 to USD 360 millions. The typical enterprises include Yunnan Baiyao Group. By end 1990s. The typical enterprises include Tianjin Tasly Group. there are 1. By 2002. etc. Chiatai Qingchunbao Group.059 TCM manufacturers but the government has initialized consolidation of the TCM production base through mergers and acquisitions to form large research –base TCM enterprises. Manufacturers focus on modern technology and formulations. Manufacturers focus on modern herbal medicine.
Table I-5-1 Top 20 manufacturers of Formulated TCM in China (sequence based on 2003) Sales revenu No.310 29 . 11 Shaanxi Topsun Group Co.300 1. Ltd.140 1.099.660 209..094.281.278.860 521..320 415.290 270. 9 Sichuan Chengdu Diao Group Zhejiang Chiatai Qingchunbao Pharmaceutical Co. Ltd.. Ltd.160 1... Ltd.080 1.. Ltd.002. 17 18 19 20 3 16 31 13 31 14 44 N/A 583. 18 Guangxi Guilin sanjin Pharmaceutical Co.. Ltd.310 7 8 9 6 8 13 8 8 7 11 1.070 2.660 N/A 1.317.550 N/A 387. Ltd. 2 Tianjin Zhongxin Pharmaceutical Co. 8 Jiangsu Nanjing Medicine Group Co.690 303. Ltd.440 N/A N/A 507.00 0) 1 Guangdong Pharmaceutical Holding Ltd.300 N/A 833.210 511. 14 Chongqing Taiji Group Co. Jilin Xiuzheng Pharmaceutical Group Stock Co.430 206.590 N/A 454. 13 Jiangxi Jiangzhong Pharmaceutical Co. Ltd. Factory List List List List e 2001 (RMB1.000) N/A 1.501. 3 Beijing Tongrentang Group Co.050 2.840 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 10 754.990 N/A 85.150 2003 2002 2001 2000 Sales revenue 2000 (RMB1.519.040 560. Ltd....220 571. Guangdong Sanjiu Medical and Pharmaceutical 17 Co.080 1 2 3 4 5 6 4 12 7 1 2 6 5 4 3 4 12 3 1 N/A 2.920 1. Ltd.537.080 522. 7 Ltd. 10 Ltd.310.. 19 Henan Wanxi Pharmaceutical Co. 4 Tianjin TASLY Group 5 Jiangxi Huiren Group 6 Shanghai Lei Yun Shang Pharmaceutical Co. 12 Hunan Jiuzhitang Co. 20 Hubei Wuhan Hongtao K Group Co.. Ltd.710 661.611... Ltd. 15 Shandong Dong-e E-Jiao Group 16 Shandong Lunan Pharmaceutical Co..
000 27.1. healthcare product and functional food.000 130. royal jelly and Panax Pseudo-ginseng is exported in name of China MEHECO.090 217. 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. In the past the export of Ginseng.000 228.000 418.790 185.030.085 N/A Value 241.000 237.000 488. Chinese Angelica.589.000 457.000 33.380.000 128.000 22.000 242.690. All the export quota was assigned by China Medicine & Healthcare Corporation (China MEHECO).000 225.000 520.787 N/A Value 127.769.000 269. But in the international market.880 403.000 295.000 N/A N/A 22.000 121. Value (USD million) ) Traditional medicinal materials Year Quantity 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 111.982.000 390.180.000 161.1 Export Situation Table I-6.000 332.000 135.000 320.660 368.050. Formulated TCM.000 466.000 123.000 108. Role of central government is decreasing Now China can export over 500 TCM is an important item in medicine foreign trading.000 497.000 383. The export of TCM was assigned and organized by central government in the past.360 Total value I-6.510.770. The export of other items is carried out by the subsidiaries of China MEHECO.930 427.1-1 Export of TCM in the past years (Unit: Quantity (MTs).000 28.000 573.700 Formulated TCM Quantity N/A N/A N/A 22.747 123. the TCM exported from China can only be regarded as healthcare product and food additive instead of as medicine.000 177.970 104.000 123.000 443.190. Less value-added products 30 .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.890.960 322.000 491.000 131. species of TCM.000 N/A N/A 139.910. concentrated Chinese herb granule.038.000 589.010.000 27.970.611.I-6 Import & Export of TCM in China I-6.000 406.000 115.000 169. hairy deer horn.000 655.000 245.000 261.000 296.
It is estimated that the Traditional Medicinal Materials exported to oversea accounts to about 60% of the total TCM exported. The reason why the export keep decreasing in the second half 1990s: Most trade was traded with RMB instead of USD. tariff rebate while the tax is 3% . The TCM industry in Japan. About 30% TCM was exported through this way.In China most of TCM are export as raw materials. The governmental administration cannot meet the demand from international market.000 per year is less than 45. TCM belongs to Native Product in exporting and the exporter enjoy 5% 31 . There are many supervision organizations to manage the export of traditional medicinal materials. 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. However afterward the export of traditional medicinal materials fluctuated much.g. However it need time to fulfill the acceptance as in Europe TCM is usually regarded as a food supplement instead of medicine. There was even much decrement for the export of traditional medicinal materials. By 1995. According to some statistics the number of TCM with export amount of more than USD 100. E. So these oversea companies demand more of traditional medicinal materials than before. The export in some state owned exporters decrease. which limit the export of some TCM. the export of traditional medicinal materials reached to its utmost level. There is not systematic plan for the plantation of herbs so the supply of the traditional medicinal materials is not stable. in 1996. The exporters compete each other by lowering the export price. which make this industry chaos. 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. 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.. USD520 million. Some enterprises are afraid of the international market. However the export of Formulated TCM decreased in the past years. South Korea and Taiwan has been developing fast in the recent years. China published a paper to limit the export of the endangered species. Chinese enterprises have not exploited the market thoroughly. This why export quantity increase but the export value decreased. The TCM that have high value or high profit only accounts for less than 20-30%. And the standardization of TCM in these countries/areas is more advanced than that of China. It is hard for TCM to pass through the administration requirement in some countries.
2% of the 32 . Japan and South Korea. Hong Kong takes an important role in the popularity of TCM around the Asia and world. total export of TCM.1. The TCM exported to Hong Kong accounts to about 20-30% of the total TCM exported. advertisement. the amount to Asia accounts for 66. Every year the export quantity/value of TCM exported to these countries accounts to about 70% of the total export quantity/value. USA. Thus the export of Formulated TCM has been decreased.- The Chinese companies pay less attention to the certification on the oversea countries and put less money in packing. and Taiwan. While about half the TCM to Hong Kong are transited to Taiwan. In 2002. where demand for much traditional medicinal materials USA and Europe where consume much herb The most popular countries for TCM export include Southeast Asia. I-6. so do the Formulated TCM. It is expected that the export of TCM in 2004 will be USD750-800 million. the export of herbal extract to North America has been increasing significantly. Hong Kong. etc. Traditionally there are three major sections for TCM: Southeast Asia where Formulated TCM has been consumed for many centuries. some transited to South Korea.2 Destination Countries Chinese TCM is exported to those Asian countries that are affected by Chinese culture. Japan. In the recent years.
368 4.717 4.564 3.871 4.422 18.049 7.339 5.20% 389.398 48.796 372.420 33 .695 38.333 3.2-1 Export value of TCM to various continents in the past (unit: USD 1.343 100% 427.170 7.000) Year Asia Africa South America North America Europe Oceania Sub total % Total 1991 308.150 10.994 1.2-2 Table Export of TCM to major countries in 2000 and 2003 (unit: USD1.895 1993 325.109 57.951 17.205 40.946 3.328 2003 333.535 46.030 1994 1.557 639.336 14.392 5.867 2.161 121.630 22.40% 1.221 248 10.296 N/A N/A 16.033 1992 337.599 352.80% 368.991 460 851 1.340 925 743 7.20% 408.485 2.575.015 2.576 95.928 57.499 N/A N/A 53.544 31.660 366.259 1.002 N/A N/A 23.759 631 71 227.854 8.403 1.520 152 262.534.979 9.297 61.1.439.343 Table I-6.Table I-6.287 153 5.798 20.774 3.971 1.000) 2003 Country Japan Hong Kong South Korea USA Germany Taiwan Singapore Italy Malaysia Netherlands France UK Russia Total 2000 Traditional medicinal materials Formulated TCM Traditional medicinal materials Formulated TCM 80.810 58.1.986 14.289 2.807 1.532 9.346 7.008 86.358 N/A N/A 15.432 1.268 427.844 19 1.527 44.914 8.466 94.60% 655.600 97.066 6.032 16.402 7.814 24.640 1995 534.924 1.313 41.856 3.912 91.673 97.683 N/A N/A 45.395 22.818 2.
1.381.433 140.100 1.770 2.060 6.920 N/A N/A 4.100 17.487 2.406.010 5.231 46.510 13.626 3.455 3.951.985 1997 N/A N/A 1996 N/A N/A 2.004 N/A N/A N/A N/A 567.060 1.628.980 8.874 1.940 4.975 373.419 N/A N/A 40.3-1 Export of traditional medicinal materials in the past years (Unit: Quantity (MTs).590 6.200 6.240 2.160 28.300 10.326 9.130 34.218 N/A N/A other Other ginseng 30.797 Quantity 2000 N/A 2.380 7.679 4.479 642.447 3.966 N/A 9.3 Export of Major TCM Items in the Past Years Table I-6.022 N/A N/A 107.143 694.365 4.459 1997 N/A N/A 1996 N/A N/A 34 .929 1.981 8.269 1.664 4.734 N/A N/A N/A N/A purpose American ginseng 13.611.393.1.965.436.173. 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. Value (USD million)) No.000 4.426.050 8.540 0.471.697.481.082 N/A N/A 7.185 N/A N/A 34.420 3.206.153 22.310 5.892.120 2002 N/A 2001 N/A N/A Value 2000 N/A 15.129 N/A 8.612 203.466.180 8.221 155.134 5.928 6.635 0.458 16.117 5.371.540 N/A N/A 2002 N/A 2001 N/A 1. Items 2003 1 2 unmilled cassia and 3 cassia flower) other botanical products gel solution and thickening agent.990 9.262 6.690 20.760 21.300 2.172.I-6.580 0.101.333.595 7.700 7.275 6.589.
700 220.534 N/A N/A N/A N/A N/A 5.996 1.805 2.083 6.748.475 3.774.304 2.665.331 N/A N/A N/A 74.600 1.379 9.551 730.090 4.644 N/A 2.677.700 1.719 3.695 3.100 2.860 4.820 N/A 4.433 2.311 2.260 4.799 0.040 2.947.654 3.200 6.361.227.070 2.234.356 366.507 175.166 N/A 5.994 2.062.303 8.003.900 4.446 2.196 N/A N/A 6.038.737 0.260 3.584.060 4.310 2.776.424 1.060 5.270 4.992.450 2.960 N/A 5.900 474.460 4.170 4.378.000 4.588.473 8. fungicide 6.551 2.380 3.200 3.534.978.140 4.580 6.730 2.307.933 4.797.441 3.644 2.537 3.904.700 1.167 4.583 2.351.999 3.020 3.927 N/A N/A 6.406.062 4.480 5.000 1.260 3.012 2.667.847 38.762 3.338.091 2.800 2.808.457 N/A 2.400 7.440 3.894 3.600 35 .989.534 33.065 5.202.470 1.785.000 3.522 6.672.780 3.600 7.572 606.380 4.010 6.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.163 N/A N/A 2.435 238.110 4.891 1.280 3.754 319.591 548.185 1.111.395.663.725 3.541 129.492.000 3.414 5.170 3.568 6.100 4.250 3.709.289 2.199 2.839 4.785.658 1.144 2.595 N/A 3.600 0.200 N/A 213.578 1.870 6.665.230 N/A N/A or similar usage hairy deer horn and its powder tuckahoe bread) other licorice fritillary bulb Tang-shen (Indian 5.450.027.868 3.637 3.300 853.490 5.514.183 1.396.622 3.916.435 6.318.520.219.180 N/A N/A 3.500 4.764.226 2.000 343.685 2.400 1.600 2.880.377.114 2.780 5.530 2.720 5.000 3.678 N/A 286.725 4.110 167.380 3.535.080 145.039 7.184 N/A N/A 6.675 2.815.300 1.542 1.030 4.990 3.
400 N/A N/A N/A N/A N/A N/A 42.143 shell.150 1.119 N/A N/A N/A N/A 1.410 N/A N/A 168.247 2.876 N/A N/A 67. claw and N/A N/A N/A N/A 13.710 1.700 1.026.030 2.877.270 1.862 2.643.093 1.790 N/A N/A 0.064 1.840 0.270 1. seed Xinjiang licorice turmeric Aweto hackmatack 1.098 N/A 15.259.051 66.040 1.502 3.410 0.654 N/A 503.676 N/A N/A N/A 16.850 0.100 1.830 1.132 N/A N/A 1.800 3.432 3.648 1. other 0.528 N/A 893.420 0.020 0.974.053 2.660 2.501 N/A N/A 0.690 0.780 0.030 1.317 192.900 1.132 303. fur.790 2.052.274 Coptis Root rhizome lovage rhubarb cumin.429 N/A N/A N/A N/A N/A N/A 847.929.923 1.900 N/A N/A 36 .592.601 1.460 N/A 0.398 N/A 1.570 1.126 1.746 0. baleen.348.582 1.800 3.150 1.200 N/A N/A N/A N/A N/A N/A 945.123 6.114 0.800 2.922.032.145 2.950 0.000 1.167.330.725 0.900 31.580 2.945 586.233 1.750 0.725.182 2.570 1.415 N/A N/A 111.010 2.580 0.247 N/A N/A 50.984 0.551 3.057 0.071 829.740 N/A eucommia bark ladybell root 1.900 0.064 0.350 1.568 1.883 N/A N/A N/A 171.937.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 0.348.890 0.396 720.550 0.575.988 21.848 1.929 21.447 N/A N/A 0.560 0.640 1.000 0.659 1.414 of Sichuan 1.042.607.200 animal foot.774 1.600 109.600 1.412 1.819 1.270 5.200 N/A N/A 186.682.
026 4.056 N/A N/A N/A 0.500 7.844 N/A N/A N/A N/A N/A N/A 37 .023 N/A 0. dragon’s blood Wild ginseng ( except American ginseng) coca thyme.030 0.033 0.064 N/A 0. laurel leaf safflower seed anise seed cardamomum 0.620 24.738 N/A 97.098.058 N/A N/A 76.050 0.040 N/A N/A N/A 0.084 0.400 N/A N/A 0.043 N/A N/A N/A N/A N/A N/A N/A N/A N/A 20.885 N/A N/A 0.001 0.340 0.063 N/A N/A 14.219 24.470 438.973 N/A N/A 47 48 49 50 51 52 53 54 55 56 plant Da Hai seed lilac Frankincense.375 0.584 N/A N/A 1.015 0. myrrh.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 0.127.050 misiacaraway 0.014 0.001 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.003 0.025 N/A N/A N/A N/A N/A N/A 24.060 0.742 N/A N/A N/A N/A N/A 0.014 0.022 N/A 0.009 0.433 N/A 26.770 N/A 82.050 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.022 N/A 0.890 0.010 0.023 N/A 0.080 0.001 N/A 35.840 37.020 N/A 0.000 0. pyrethrum bud of Chinese glands and for other scholar tree Unlisted medicine 0.080 0.600 N/A 32.949 N/A 328.008 1.144 N/A N/A 1.090 N/A N/A 0.550 N/A 21.148 0.036 425.010 0.030 0.229 0.050 0.42 43 derris root.140 0.024 N/A N/A 0.379 47.742 N/A N/A 25.206 15.467 7.945 N/A 85.024 0.080 N/A 0.
500 N/A 0.080 0.182 N/A N/A 0.000 N/A 0.570 N/A N/A 0.000 0.008 N/A 0.003 N/A 0.57 58 59 60 61 62 63 64 65 66 67 gharu-wood cardamomum White drug-powder cantharis gall.010 0.816 145.353 N/A 6.333 N/A 68. powder beast and 0.562.230 N/A 217.200 46.454 0.085 N/A 4.001 0.003 N/A 72.060 93.000 17.756 N/A 1.917 0.400 0.257.458 N/A N/A 0.241 3.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.064 N/A N/A 0.038 N/A 0.001 0.707 N/A N/A 0.80 Total 191.432 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 0.543 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 0.000 3.677.284.403.840 N/A N/A N/A N/A N/A 6.839 21.060 N/A N/A N/A N/A N/A N/A N/A 1.768 N/A N/A 0.868 301.003 N/A N/A N/A 0.391 126.010 0.612 N/A 0 N/A 0 40.050 N/A 73.265 38 .017 N/A N/A 0.153 N/A N/A 43.241 N/A 0.396 N/A N/A 30.205 50.449.758 N/A N/A 0.70 39.500 0.053 0.658 0.589.520 N/A N/A 0.816 N/A N/A N/A N/A N/A N/A 71 and flavor N/A 319.985.424 0.279 6.983 N/A 115.210 N/A N/A 130.001 10.960 N/A 78.958 N/A 20. gland and other animal product xanthate ossein and bone proceeded with acid cummin seed other safflower seed other fresh ginseng muskiness beast tooth tooth.
812 31.912 N/A 16.450 16.500 2.244.619 14.288 7.982.240 9.480 77.967 23.466.809 1.090 N/A N/A 3.628 1.180 10.760 33.590 0.310 0.260 9.017 30.200 3.869 3.260 83.565 36.740 2.500 N/A N/A 2.912 N/A 22.810 2.124.120 7.3-2 Export of Formulated TCM in the past years (Unit: Quantity (MTs).680 51.660 177.594 8.040 4.545 6.868.570 8.Table I-6.259 57.900 5.100 103.890 0.839 3.747 N/A N/A 11.120.112 13.830 3.830 1.130 3.930 12.665 5.698.581.283 N/A N/A 11.116 1.890.787 and 9.410 8.210 13.597.070 76.935 32.919 6.800 N/A N/A 2003 2002 2001 2000 1997 1996 2002 2001 Quantity 2000 1997 1996 39 .387 160.484. 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 74.882.335.869.520 0.141 29.037.1.495 2.400 6.660 10.265 5.655.521.631.967 2.689.898.700 2.207.
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%.
006 0.940 29.494.098 2.058.150 2003 13.205.396 N/A N/A N/A N/A N/A 1.730 N/A N/A N/A 2.505.884 0.260 1.460 933.myrrh.528.656 N/A N/A 331.747 N/A N/A 2.397 English name other botanical products gel solution and thickening agent. other animal foot.340 0.140 2.701 N/A other unproceeded or de-fatty bone or corner post other ginseng 1.380 1.240 1.170 beak hairy deer horn and its powder 2.750 16.544 N/A 57.410 4.742.387 N/A 28.2. for pharmaceutical purpose) American ginseng 13.Table I-6.550 0.610 1.005 2002 2001 1.136 169.330 2.342 N/A N/A 5.614 1.990 0.209.720 9. 1 2 3 4 5 turtle shell.655 31.296 1.189 N/A N/A N/A N/A 0.140 2000 2002 Quantity 2001 2000 42 .2-1 Import of traditional medicinal materials in the past years (Unit: Quantity (MTs).240 herbs and its parts used mainly as spice and flavor other licorice juice and infusion 9. baleen.083 2.770 N/A 0. claw and 6 7 Frankincense.423 1.920 1.070 N/A N/A 0.950 N/A N/A N/A 0. dragon’s blood 8 9 10 Other plants or their parts uses as insecticide.438 3.060 N/A N/A N/A 3.998 21.344 N/A N/A 2.284 0.930.927 N/A N/A 373.433 1.180 3. fungicide or 11 12 13 similar usage lilac xanthate 1.002 0.049 865.190 2.880 1. Value (USD million)) Value No.050 N/A N/A 272. baleen fur.
320 1.423 0.128.068 33.780 0.955 749.947 62.081 0.020 N/A 0.370 0.095 0.480 0.008 0.773 43 .239 0.469 N/A N/A 120.105 N/A 173.949 N/A 8.357 493.629 N/A N/A 0.114 1.345 1.235 0.160 0.large head atractylodes rhizome 14 fritillary bulb 15 thyme.770 0.958.053 33.303 0.704 N/A 0.032 0.089 1.124 0.970 0.170 0.230 1.320 N/A N/A N/A 0.492 6.870 0.400 148.512 1.032 23.801 0.860 243.260 0. laurel leaf 16 tuckahoe (Indian bread) 17 bud of Chinese scholartree 18 cardamomum 19 20 21 22 23 cardamomum 24 25 26 27 bitter apricot seed Xinjiang licorice rhizome of Sichuan lovage other safflower seed Tuber of Pinellia Unlisted glands for medicine and other animal products shellac 0.244 1.589 N/A N/A 14.780 591.032 0.954.743.461 948.111 680.633 0.100 0.460 358.180 1.708 N/A 1.390 883.180 99.498 0.000 0.259 744.757 0.104.570 0.390 0.590 52.250 0.128 N/A 1.000 0.775 536.100 0.765 N/A 120.415 N/A 0.380 0.890 0.210 0.752.000 1.360 1.219 0.045 0.165 N/A 657.180 0.
830 0.107 0.460 480.020 0.590 163.028 0.093 0.455 101.310 1.850 N/A 2.406 0.024 0.153 33.215 0.129 0.023 0.156 0.016 0.029 16.650 N/A 4.872 N/A 0.024 0.001 5.666 0.100 43.009 0.752 N/A 22.004 0.721 10.019 0.006 0.766 0.054 0.002 0.001 N/A 0. hackmatack seed derris root.013 0.040 0.190 0.844 1.556 15.193.031 0.006 0.030 0.000 N/A 0.001 665.199 0.569 0. pyrethrum medlar 0.175 76.384 N/A 44 .000 cumin.025 0.708 35.100 N/A N/A 0.000 0.000 107.011 fresh royal jelly turmeric 0.005 83.135 0.007 N/A 83.005 0.010 N/A N/A N/A rotenone-containing plant astragalus 0.014 8.065 1.307 16.381 N/A 0.0.006 0.004 0.496 0.380 0.884 1.598 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 0.010 0.003 0.375 0.007 0.046 N/A 0.978 0.
002 0.003 N/A N/A 24.000 19.003 0.199 8.005 0.002 7.600 0.949 1.0.000 N/A 0.020 0.003 0.560 175.001 0.009 N/A 0.000 0.047 0.000 0.200 Tang-shen Pseudo GinsengPseudo Ginseng rehmannia root N/A N/A N/A 0.007 N/A 4.060 0.000 47.300 52.185 N/A 13.152 0.562 cilantro seed rhubarb cummin seed unmilled cassia and cassia flower 0.417 resh royal jelly powder Chinese anise N/A N/A 0.001 0.161 0.000 13.350 0.000 0.008 0.042 743.275 N/A N/A 10.160 0.005 N/A 0.092 0.137 1.000 9.022 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 0.955 50.083 2.402 N/A 0.002 N/A 0.500 N/A 8.013 0.240 N/A N/A N/A N/A 0.629 0.040 45 .002 0.278 0.050 0.234 N/A 1.304 0.060 N/A N/A 0.004 N/A N/A 0.187 N/A 0.648 3.020 0.018 N/A 0.500 N/A 0.991 N/A 361.002 0.864 15.003 0.002 0.
823 N/A 0.181 6.001 1.029 N/A 23.930 0.152 0.120 N/A 0.346 N/A 0.065 0.950 0. (except American ginseng coca safflower seed anise seed gharu-wood N/A 0. beast tooth powder and scrap bird’s nest arte misia White drug-powder cantharis gall.400 1.180 N/A N/A N/A N/A N/A N/A 1.005 N/A N/A 9.003 N/A 0.030 N/A N/A N/A N/A N/A N/A 0.019 N/A N/A 0.493 3. gland and other animal product ossein and bone proceeded with acid other fresh ginseng fresh ginseng maw seed Wild ginseng.Tuber of Tall Gastrodia 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 muskiness beast tooth.317 N/A 0.000 0.061 N/A N/A 0.000 1.381 313.096 46 .001 0.450 N/A N/A 0.283 0.001 N/A N/A N/A 0.020 N/A N/A N/A 0.001 N/A N/A N/A N/A N/A N/A 0.400 N/A N/A 63.575 0.850 N/A N/A N/A 5.008 N/A N/A N/A N/A N/A 0.005 0.087 N/A 0.310 N/A N/A N/A N/A N/A N/A 0.769 1.002 N/A N/A N/A N/A N/A 0.002 N/A N/A N/A 0.299 0.951 4.008 N/A N/A N/A N/A N/A N/A N/A 0.060 204.051 0.004 N/A N/A N/A 0.
934.050 555.375 46.350 N/A N/A 95.186 57.272.299 1.380 0.426 N/A N/A 13.234 N/A 20.Total 61.289 N/A 15.176 8.446 10.445.670 N/A 494.412.729 441.223 15.581 Table I-6. Value (USD million) ) Value English name Anti-flammatory analgesic bolus White drug-powder other Chinese TCM Menthocamphorate Unlisted mixed or unmixed pharmaceuticals wine of TCM Total N/A 94.578.820 416.569.856 N/A 24.850 N/A 93.510 0.131.412 N/A 13.179.420 7.025.576.300 1.219 10.800 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 .660 N/A 60.664 25.2.2-2 Import of formulated TCM in the past years (Unit: Quantity (MTs).399 44.510 N/A 6.759 49.610 18.509 9.502 0.730 92.200 N/A 50.951.715.
even around China: the expression of the TCM theory and dosage. effectiveness and well proportion. the label on the packing is different to the actual component. This is the main obstacle to TCM entering into the international market. there is a series of scientific methods to ensure the medicine for its properties as safety. about 14 Chinese TCM producers have now passed the GMP certification conducted by the Australia and German pharmaceutical administration.I-7 TCM Entering the International Market – Difficulties & Achievement By early 2000. The TCM theory is hard to unify with the pharmaceutical theory in the western world. For example. the label strategy Most TCM is not well patented. only a handful of countries. the scientific evidence In the international market. medicine should have a clear constitution and a clear action. Sometime. administrators and patients to understand. However. old practitioners only prescribe the recipe based on their experience or even by feeling. However. stability. grasp and accept the TCM. And Beijing TCM University is collaborating with a German partner to establish a hospital in Germany. 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 pharmaceutical system difference In western pharmaceutical theory. The US has about 28 state-owned and privately owned TMC colleges. I-8 Some Commercial Facts of TCM Industry in China 48 . have accepted TCM in their national health insurance systems. In most circumstance. quality and safety. It must have direct action on patients. In fact the theory of TCM is complicated and explanation of the indication. China wants more countries to do so. But Chinese medicine is complicated in composition and is hard to be described clearly. The government is assisting institutions cooperating with overseas counterparts to establish TCM academic institutions and clinic joint ventures. including a subsidiary of Shanghai TCM University. such as Japan and Switzerland. But TCM is lack of scientific support in its affects. Middlesex University in the UK and Beijing TCM University have jointly set up a TCM bachelor degree and higher research degrees in London. This situation does not coordinate with the trading rule. function and application of TCM is too abstruse to express with modern language. hindering TCM entering into the international market. So far the China-made TCM still share less market in the world. so in order to protect their technology some Chinese manufactures do not label the component of TCM on the packing. and to get TCM on the world stage. there is a fundamental shortcoming for the popularity of TCM around world. thus hindering the TCM entering the international market. This is why it is hard for modern scientists.
60% 26. But this situation changed much in the past two decades.127 144 169 1. etc.1 Economic Structure of TCM Industry Ownership Switch Table I-8.63% 191 1. Achievement in the Recent Years After the reform and self-modification.65% 487 37. 8 of them are top 500 fortunes in China.61% 40. the ownership of TCM companies has changed much in the past two decades.093 2. This reflects the general situation of the ownership in China in the past five years. the traditional old stores have been modified and innovated with service 49 .17% 15. At the same time.20% 78 11. As stated in the previous sections.57% From the above table we can see that in the past years.35% 22. concentrating assembly.25% 17. most Chinese TCM enterprises were state owned ones. But after competition. 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. Some new sales system has replaced the old system that had to depend on the traditional stores. have formed in China. many small size enterprises have been kicked out of the market.13% 45. or even the local government.14% 44.1-1 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 1.27% 14.092 149 15.48% 17. executive sales.35% 100% 4.56% 188 33. I-8.19% 13. The new sales formats such as executive agent.52% 2003 7.I-8.47% 100% 100% 100% 2000 372 129 411 2001 297 108 514 2002 243 93 443 2003 2000 % 2001 9. Among the Chinese TCM enterprises.29% 13. acquisition. Now there are many large-scale TCM enterprises in China.107 161 47 1. chain management. First some formal stock companies formed in the commercial logistic of TCM in China.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. Second.58% 2002 8. the management system has changed.
Baiquan.content of modern system. In the past. some distributing center developed in the last few years. Guangxi Yulin. the famous distributing centers of TCM include: Hebei Anguo. Yuzhou. Zhangshu. . Anhui Haozhou. And the existing marts have been standardized.Type of Traders 50 . Xi’an Kangfulu. I-8.Trader Marts In the thousands of years of history. All these factors attribute to the switch of TCM industry from the wild & mass expending to systematic and strategically development. After the open of China to the world. 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. They are: Sichuan Hehuaci. a lot of distributing center of TCM has form around China.3 Sales Network of TCM . Also the central government has suspended some illegal trade fairs for traditional medicinal materials. Guangzhou Qingping. Zhengzhou Nandajie.
For various reasons the state owned TCM commerce entities operate in deficit. wholesales and quality security of TCM. mostly these boots are privately owned. there are several kinds of entities to distribute TCM in China. Other miscellaneous companies and individual persons. They buy TCM from countryside and sell them to the cities. distribution. It is estimated that the trade amount in the market is at least RMB10 billions per year. like some foreign trade companies. State owned TCM distributors They are distributing TCM in the areas of counties or above.With the open of TCM market in mid 1980s. The private traffic dealers These people distribute around the cities and countryside. After ten years development. In every market there are a lot of boots to deal with TCM. sales in these enterprises decrease in the past few years. Local TCM market The There are 17 TCM markets around China. 51 . There are fixed facilities and professional persons to engage in the purchase. a lot of entities have engaged in the distribution of TCM business around China.
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.
the quality of TCM is not stable. In 1998. 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. China has approved over thousand new TCM drug. The research level on TCM is low. To increase the market share from 5% at present to 15% in the future world market. For instance. After the enforcement of The Examination and Approving Process for New Drug. 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. According to some statistics. 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 . and strengthening their R&D capabilities. approved to begin commercial production. offering attractive postdoctoral package for young researchers. there are 29 universities and 51 primary schools of TCM that are conducting the research on TCM. 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. the Chinese government put the TCM project as a primary task. To culture Chinese enterprises which are competitive in the international market. the standardization is not consummate and the production scale is relatively small. 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. Chinese people aim in the next few years is to solve these problems. 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.1 Governmental Plan for the TCM Research In as early as 1996.I-10 Research & Modern Approaches to TCM I-10.
the first director (1932-1966) of Shanghai Institute of Material Medical. And fingerprint quality control method has been used in very new injection. I-10.vascular diseases and hepatitis. portable and edible. whose activity has been confirmed by trial and error over thousand of years. maytansine. Acupuncture anesthesia. cardio. fast.level prizes and 482 programs won the prizes awarded by the Ministry or the SATCM. For many years. and new drugs have been developed via structural modification. 127 programs of scientific research won the State. the science and technology of TCM have got rapid development. The cultural revolution and the medical system in rural areas promoted the sue of TCM and accelerated its scientific study. Now there are many R&D projects concentrating on modifying natural products. the Formulated TCM is moving toward the direction of efficient. etc. aiming to integrate it with biomedical sciences to form a common body of medical knowledge. The pioneers in this field were Zhao Cheng-Gu. there were 170 research institutions across the country.cerebro. Lead compounds such as artemisinine. More than 500 species of herbs have been studied using modern methods. In case of formulation type. of which 77 were independent units. Encouraging progress has been made in TCM treatment of tumors. researchers have also got remarkable progress in the study of the implications and the therapeutic method and principle of Zheng-syndrome in TCM. The research of Qinghaosu (Artemisinin) has opened up a new road to treat pernicious malaria.Quality Improvement of TCM Recent years the quality of Formulated TCM has been improved. The national general survey of herbal resources provided reliable date on the distribution and reserves of the medicinal herbs. have been identified. initiated by our country. The researches on the varieties of Chinese crude drugs provided scientific proposal for revising the national standards. has unceasingly got breakthroughs and is keeping at the top level in the world. 55 . traditional Chinese medicine provides a rich source of potential lead compounds.800 herbs. With more than 12. Chinese researchers have applied scientific methods to studies of TCM. In 1978-1993.3 Brief Introduction of the Achievement in TCM Research Since the founding of our People's Republic. agrimophol and pseudolaric acid. It is reported that quantitatively quality control method has been used in every newly approved Formulated TCM.4 Modern Approach in the TCM Research . One of most significant examples is the development of the anti-malaria medicine artemether from studies of qinghao (artemisia annua). 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. By means of modern scientific technology. and hundreds of compounds have been isolated. animal extracts and minerals.I-10. In 1993. characterized and tested.
pastes and pellets made from rough raw materials. Harvard Medical School and Beijing Medical University. freeze-drying. Also many TCM factories passed the GMP certification. TCMs are traditionally dispensed as pills. capsules and even controlled delivery systems. Hong Kong Chinese University. Roche Bioscience cooperated with the Shanghai Institute of Organic Chemistry in identifying components of TCM and synthesizing organic compounds. I-10. Analytical techniques such as gas chromatography (GC) and high-performance liquid chromatography (HPLC) are being applied in quality control. SDA has issued about 700 certificates to new drug. such new technologies have been used: multi-function extraction. Their results may find applications in quality control of raw herbal materials. Recently it was announced that three universities. powders. the efficacy of TCMs and reducing their toxicity.During the ninth-five-year period. will collaborate in TCM research sponsored by a Hong Kong-based business group. and several US companies. scientists at Beijing Science and Technology University carried out a pilot study of production of the anti-tumor compound praclitaxel through cell culture. In a recent government reshuffle the bureau for TCM was left untouched. and a number of national research centers were established alongside the existing nationwide Chinese Academy of TCM.6 Summary of the Research on Formulated TCM In the past 15 years. Gene technology also has potential applications in increasing I-10. dynamic extraction. and in recent years products have emerged using pure herb extracts in modern dosage forms including covered tablets. and researchers at China Pharmaceutical University and Zhong Shan University have started work on classifying and identifying Chinese herbs by establishing their DNA fingerprints. But modern pharmaceuticals techniques are steadily penetrating every aspect of TCM. are participating in TCM research with Chinese research institutes. including Genelabs. Recently. one-step granulization. spray drying. These modernized TCM products are being sold alongside chemical-based medicines in hospitals and pharmacies. Modern biological technology has also been adopted in TCM studies.5 Foreign Involvement in the TCM Research Clearly the Chinese government takes TCM very seriously. the Chinese research on Formulated TCM focuses in the diseases of the 56 . New Technology & Equipments In terms of production equipment & technology. Some species already passed the FDA of USA and begin the clinical research. Multinationals and Western scientists are also interested in TCM. paracelsian and Anti-Cancer. etc. injections. multi-efficiency concentration.
This means that most of the Chinese research on TCM focuses on the composite formulations and the modification of the formulations. including digestive system disease (25%). From 1999-2000.7 New TCM Drugs Approved by SDA in the Past Four Years Table I-10. urinary system disease 4% Gynecology disease: 7% Pediatrics disease: 6% Surgery disease: 4% Orthopaedics disease: 4% Eye. In the recent years. Forms 1 2 3 4 5 6 7 8 9 11 capsule granule tablet oral liquid bulk pharmaceutical ointment mixture pill powder lotion 2003 82 42 30 14 8 8 7 7 7 6 5 5 4 2 2 2 1 1 3 4 1 2002 48 15 9 7 3 3 4 1 1 1 2 4 4 1 3 2 4 1 2 2001 80 47 35 18 4 4 13 9 4 5 1999 59 49 30 19 2 4 7 5 3 2 6 4 3 2 1 10 injection 12 syrup 13 suppository 14 Soft capsule 15 tincture 16 wine 17 drop pills 20 effervesce 57 . nose disease: 3% Dermatology disease: 2% Ophthalmology disease: 1% From the formulation point of view. respiratory system disease 13%. pill. throat. the majority of researches focus on the traditional formulations like syrup.following areas: Internal disease: 73%. SDA approved 361 new drugs of TCM. more research have conducted to such new formulations like drop pill. I-10. paste. These two types accounts for 94% of the total new drugs.7-1 New TCM drugs approved in China – by formulations No. etc. 170 of them are the third class new drugs and 170 of them are the fourth class new drugs.
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.
decides to focus on the China market in the future. In the past. more and more famous foreign companies entered the Chinese market. the number of oversea natural drug is no more than 20 species.g. So far they have invested RMB10 million in the advertisement in southern China. the foreign-brand TCM has shared considerate market in China. 147 of them are made on base of the Chinese traditional recipe.g. 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. after changing the packing or making into Formulated TCM.5 million to CAS Shanghai Pharmaceutical Research Institute to screen the new compounds for pharmaceutical. E. the Japanese government approved 210 kinds of Formulated TCM in Japan.g.I-11 Involvement of Foreign-Brand TCM in China Contrary to the weak sales of Chinese-brand TCM. what is more. in Chinese market with high price. Another example is that Norvatis of Swiss invested USD4. some German companies bought ginkgo leaf from China and extract ginkgo biloba back to China. by end 1990s. Mars of Germany who is specialized in the natural herbal medicine. 75% of the raw materials for these Formulated TCM are from China. Dr. By 2002. 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. E. it is estimated that these Japan-made Formulated TCM share about 70% Formulated TCM market around the world. there are typical oversea brands. It is reported that there had been 40 natural pharmaceutical registered in China by 2001. E. And. some oversea companies purchased large quantity of cheap traditional medicinal materials from China and resell it. Now in the market. there are ginkgo biloba preparation made from Germany and France. In the recent two years (since 2000). According to the investigation to three major pharmacy stores in Shanghai (Shanghai No. 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. France and Japan.1 Drug Store.
2. (Hong Kong) He Xing Bai Hua You Co. 0. 0. Ltd.34/bottle Pill Oinent. The major disadvantage for the oversea brand is that its price is much higher than that of domestic made TCM. Ltd. 50mL/bottle Powder..g. Ltd. CZ20030001 N/A N/A BZC20000020 BZC20000019 Z2003012 Z2003011 Z2003010 Z2003004 Z2003003 Z2003002 Register No.... 10cm x 15 cm Water pill. 25mL/bottle Oil. Some is even 10 times that of the domestic brands. Lingnan Pharmaceutical (Hong Kong) Co. 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.. (Hong Kong) He Xing Bai Hua You Co... (Taiwan) Jingdu Yang Sheng Tang N/A Pharmaceutical Co. 20mL Oinent. Ltd. while for domestic made product it is only RMB12/20pieces. Hong Kong Huang Dao Yi Pharmaceutical Co. 5mL/bottle Manufacturers He Xing Bai Hua You Co.of TCM in China accounts for no more than 1%. 20mL/bottle Oil.. Yu Ren Sheng (Hong Kong) Co.. The price for Jiu Xin Da (a kind of drug for heart attach) from Japan is RMB131/20 pieces. Ltd.3 g Oil.. Ltd.55mL/bottle Oinent. Ltd. Hong Kong Huang Dao Yi Pharmaceutical Co. Lingnan Pharmaceutical (Hong Kong) Co. 5mL Oil. Ltd. Desheng Pharmaceutical Co. Ltd. (Hong Kong) Lingnan Pharmaceutical (Hong Kong) Co. E. 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.. Z2003001 60 . (Hong Kong) He Xing Bai Hua You Co.. Ltd. Yu Ren Sheng (Hong Kong) Co.. Ltd. However we believe that more and more foreign products will be accepted by the Chinese people in the future. Ltd. 10mL/bottle Specifications Oil. 70mL Oil.
new preparation. The percentage of Formulated TCM among the total TCM exported will increase. etc. China is determining to develop a kind of scientific research rule which accordance with the international standard and suitable for the development of Chinese medicine. Product Target To screen 20 qualified Formulated TCM with clear therapy mechanism. clinical equivalence. 5) The research on the TCM production technology and product quality. The sales of Formulated TCM will be RMB80 billion per year. to set up database of standard TCM. This task is to be finish via researching on the mounting technique. active part of TCM. to ascertain the active component. and other good specifications like safety. new equipment. 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%. production technology. 4) The research on the preservation of raw source and on the multiple utilization of resource. relatively simple constitute and modern characteristic. large social demand.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. During the Ninth-Five-Year. effective. It is reported that China will culture 20 modern Formulated TCM within 5 years. equality. new technique. easy usability. China will put one or two excellent TCM composite to enter the international market. China will formulate research rule of refined granule of TCM in the Ninth-Five-Year. stability. 6) The research on new technology. preparation technique. safety and clinical evaluation. on their quality standard. And China determine to share 15% of world herbal market. 3) The research on the refined granule of TCM. quality control. At the same time. new product and the research on the TCM biological technology. action. China will research on 71 kinds of TCM. in order to set up the measuring method and differentiating method. 2-3 Formulated TCM will enter the international market. to start systematic research on the quality control of raw materials. controllable. new auxiliary. 2) The research on the standardization method for Formulated TCM China will choose 5 TCM composites which have definite action. 61 . 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.
collection etc. to set up R & D center and the investment of R & D will be 5% of the total sales value. More research will be conducted toward it. At the same time. Promotion of the Industrialization of Traditional Medicinal Materials Firstly to promote the standardization and industrialization of the plantation of traditional medicinal materials. digging. the standard should be formulated and executed for herb plantation. Secondly to protect the wild medicine resources by introducing the home seeding. Target for Enterprise To culture 5 large enterprises with annual sales value of RMB 3 billion. 10-15 large enterprises with annual sales value of 1 billion. Thirdly the enterprises of Formulated TCM are encouraged to set up traditional medicinal 62 . processing technology. better protection and utilization of licorice. For some large-scale enterprise. The central government will support the construction of seed gene database. should be prohibited. home-breeding and substitutes. Thirdly to enhance and consummate the standard for Formulated TCM by reference to the oversea experience in the development of natural pharma. and to make further research on the processing technology and the quality of concentrated Chinese herb granule.Technology Target To form technology innovation system in each enterprise. 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. Excessive exploitation. In the western area. At last to establish the national standard for concentrated Chinese herb granule. 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. At the same time. Secondly to consummate the processing standard for concentrated Chinese herb granule. especially in the major production areas of traditional medicinal materials by introducing the advanced plantation technology and biotechnology. so that to improve the quality of the traditional medicinal materials. At the same time. especially on the research of metal content and agrochemical residue. The fingerprint technology for the quality control of Formulated TCM should be promoted. modern biological technology is recommended for the screening of the good seeds. collection. ephedra is important.
At the same time. The process and quality control should be standard and the test should be modern. the advanced technologies such as soakage and drying. micro pills. The traditional drug with definite actions. Fourthly China central government encourages the industrialization of herbal extraction. accurate and fast evaluation method and index system for the effective component. especially in the field of technology innovation. especially for such preparations as coating for TCM. etc. The programs of the research were chosen based on the submitted proposals from local government. 63 . 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.materials base or even set up the first workshop in the production area of traditional medicinal materials. On base of the traditional concentrated Chinese herb granule. Second to fasten the secondary research and development on the existing good TCM products. On base of the existing concentrate granular technology. the new types of concentrated Chinese herb granule should be developed. At last to fasten the reform on the forms of the Formulated TCM by referring to the success of chemical synthetic pharmaceuticals. D: Some National Plans In June 2002. SDA launched the plan to develop new TCM in China. drop pills. The recipe of these drugs are usually describe by the famous and old doctors in the ancient time. The development plan will focus on the following areas: first class new drugs and second-class development with Chinese intelligence property. Thirdly to development new Formulated TCM to supplement the supply shortage of modern pharmaceuticals. The new form of Formulated TCM that can best perform the function of the TCM will be developed. by inheriting the ancient technology. 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. Encouragement on Formulated TCM Industry First to set up effective. combining the modern technology and referring the international experience on natural pharma. After serious screening. The development on advanced technology and new exipients are encouraged. there are 70 projects listed in the new drug development plan in the TCM industry. standardization and mass production.
20 engineering centers and 10 industrial bases for TCM production. State Economic & Trade Committee issued The Development Compendium for TCM in the Future. In Nov. To develop new drugs with definite functions 64 . The secondary development & exploitation of the famous and traditional drugs. each with annual sales value of RMB5 billion. And there will be 10 large TCM enterprises. by 2010. 2002. To formulate and consummate the standard of TCM in China. there will be 5 large TCM enterprises. The four development strategies include: To set up new systems for modern TCM in China To establish 2-3 state level TCM research labs. 10 TCM R & D centers.- The formulations that are described and processed within some famous TCM schools in China. According to this plan. each with annual sales value of RMB 3 billion.
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
Coptis Root . grifola umbellata. In as early as 1980s.Shaanxi Shaanxi has plentiful herb resource. rhizome of Sichuan lovage. eucommia bark. . rhubarb vine. So far they are success in the plantation of Tuber of Tall Gastrodia.Yunnan Yunnan province is famous for its vast resource of natural herbal. Etc. polyphylla rhizome paridis. yew. Appendix II-1 Brief Introduction to the TCM Industry in Some Important Provinces . Guangdong province has successfully cooperated with some universities and research institutes to set up the GAP industrial base for common andrographis. In addition to the research on GAP plantation. Now Shaanxi Hanzhong is the plantation base of traditional medicinal materials in Shaanxi province. 67 . Danggui. has started up the research on the standard plantation of amount fruit. Sichuan province started up the plantation bases for the TMC. bitter galingal. Now Sichuan has set up 37 plantation bases for 30 species of traditional medicinal materials.600 kinds of traditional medicinal materials. rosa banksiae Shaotong: Tuber of Tall Gastrodia . Sichuan province also conduct research on the standard plantation of 30 species of traditional medicinal materials. Tuber of Tall Gastrodia. muskiness. while the plantation area and the output of eucommia bark.Sichuan Sichuan province has plentiful nature resources for TCM. cardamomum Wenshan: Sanxi Chuxiong: tuckahoe (Indian bread) Lijiang and Dali: Chinese Angelica.Guangdong Province Guangdong province. dwarf lilyturf tuber. It is reported that the output of Tuber of Tall Gastrodiain Shaanxi Hanzhong accounts for 60% of the total output in China. dragon blood. The famous herbs are: Tuber of Tall Gastrodia. Asiatic cornelian cherry fruit. Their aim is to reduce the reliance on the natural resource and develop the plantation mode for the traditional medicinal materials production. There are three large plantation bases of traditional medicinal materials in Yunnan province: Xishuangbana and Dehong: focus on amomun fruit. During the ten-five-year period. They also draft GAP standard for Danshen. bear gall. yew. which are based on the 8 supporting items. large head atractylodes rhizome. . So the local government develop a mode of “company + production base + peasant” for the plantation of traditional medicinal materials. Cantonese fingered citron. The major areas for the traditional medicinal materials are Hanzhong area where there are about 1.II. grifola umbellataaccount for 50% of the total figure in China.And they have finished the draft of GAP oncordate houttuynia. etc. lamp flower.
Guizhou province will support five production 68 . The major items in Hebei Anguo are ladybell root. .Inner Mongolia Inner Mongolia is famous for the ephedra and licorice resource. and Zhejiang Kangenbei Pharmaceutical Co. chrysanthemum. dahurian angelica root and Danshen root. The Miaoyao is the famous native medicine in Guizhou area.chrysanthemum. The annual output of traditional medicinal materials in Hebei Anguo is 30. Shaanxi province will invest RMB50 million/year at least in the development of TCM industry. 10% and 10%. there are many large TCM enterprises in Zhejiang province like Zhejiang Chiatai Qingchunbao Pharmaceutical Group.Hebei The main areas of traditional medicinal materials in Hebei province is Anguo city. The major species of traditional medicinal materials include Tuber of Tall Gastrodia. Ltd. as well as on the cassia twig tuckahoe (Indian bread)capsule. respectively of the total output in China. Ankang and Shangluo. In addition. is the largest one with annual sales value of over RMB2 billion.白术 large head atractylodes rhizome. tuber fleeceflower. 8 of the TCM enterprise have annual sale value of over RMB200 million. phellodendron bark.. There are 12 big TCM items with annual sales value of over RMB50 million.Zhejiang The famous traditional medicinal materials in Zhejiang province include fritillary bulb.Jiangsu Now there are 120 new drug (TCM) licenses in Jiangsu province. including Jiangsu Shanhe. evodia fruit. the number of plantation TCM in Hebei Anguo is 223 and the plantation area is 8. corydalis tuber. ginkgo biloba leaf.. astragalus. In the next ten years.700 hectares. cassia twig tuckahoe (Indian bread)capsule. boiling. Ltd. Jiangsu Suzhong. Jiangsu Kangyuan.. topaz. .Guizhou Guizhou has profound resources of herbs. Amongst the TCM producers. radix asparagi. including Mai Luo Ning injection. Now Ningxia province is building the 1. And they will set up three major production bases of TCM in Hanzhong. . eucommia bark. Zhejiang Huqing Yutang Pharmaceutical Co. etc.000MTs. In the modern research approach. Tuber of Pinellia. The output of these four items accounts for 80%. Ltd.. So far there are over 1. .In the next five years.600 individual families living on this business. polygonum capilalum.100 mills to process the traditional medicinal materials and there are 8. By 2001. . Jiangsu take major role in the research on standard plantation of ginkgo biloba.300 hectare plantation base of ephedra. 25%.Ningxia Ningxia is famous for it ephedra and medlar. ladybell root. . accounting for 70% of the total output in Hebei province. Jiangsu Yangzijiang Pharmaceutical Co. The famous Miaoyao include epimedium herb. dendrobium stem.
000 hectares. . Guizhou Yibai. The total plantation area is over 100. Now the big industrial chains are Tuber of Tall Gastrodia. The famous traditional medicinal materials species include hairy deerhorn. coral. pawpaw.508 species of traditional medicinal materials in Anhui province. sea pumpkin. . Ltd. abalone shell. clamshell.sea snake.110 kinds of herbs in Hainan province.300 hectares at least. .. It is reported that there are 3. each with plantation areas of 1.Hunan There are 2. The plantation area of traditional medicinal materials is 34. 69 . a category of traditional medicinal materials grown in southern China. Guizhou Yikang.seahorse.bezoar. chrysanthemum. The famous TCM enterprise in Guangxi province include Guilin Jiqi Pharmaceutical Co. pearl.000 hectares. . Guizhou Xinbang.. hawksbill. There are 34 TCM enterprises in Hunan province. amber. polygonum capilalum. According to the plan for 2010. The famous TCM enterprises in Guizhou include Guizhou Shenqi. eucommia bark. 241kinds of them can be found in Hunan province.Anhui There are 2. The total reservation of traditional medicinal materials in Hunan province is 12 million MTs. The major traditional medicinal materials are White peony root. Guilin Sanjin Pharma.bases of traditional medicinal materials.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. Guixi Pharma and Wuzhou Pharma. phellodendron bark. Among the 363 important traditional medicinal materials in China. seadragon. The industrial revenues of TCM industry by 2005 and 2010 will reach RMB6 billion and RMB15 billion. oyster. .Hainan Hainan province is an important production base of Nanyao. 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.384 kinds of traditional medicinal materials in Hunan province. pangolin. bird’s nest. large head atractylodes rhizome. The famous species are eucommia bark.
500MTs/year) and Tang-shen(3. . The major items are ginseng. acanthopanax root. rough gentian. The total reservation is 188.000MTs.Shanxi There are 1. the plantation area in Chongqing city is 260. There are six big traditional medicinal materials plantation bases in Chongqing city which are built by the following enterprises: .790 species of traditional medicinal materials around Changbaishan area.Chongqing By 2002.Jilin There are 2.116 species of traditional medicinal materials in Shanxin province. The major items of traditional medicinal materials are (2. hairy deer horn. The output value of traditional medicinal materials in Jilin is RMB1. asarumasarum. frog oil.000MTs/year). Now many famous TCM enterprises have set up GAP plantation bases in Jilin province.000 hectares.000 hectares. The present plantation areas of traditional medicinal materials in Jilin province is 33. 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 ..8 billion.
000MTs. Figwort Total demand in China is 4. Danshen The annual plantation area of Danshen is 60. Anemarrhena rhizome Not a good item but with enough supply. Dahurian angelica root It is one of the largest traditional medicinal materials items in China.500MTs/year.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. Business is not clear for the next years. The production scale is enlarging. Fritillary bulb Too much plantation and enough supply in the market. The annual supply quantity is about 3. However its price has been high recent years.000-30. Balloon root The demand and supply is equal. Lily Too much plantation it the past years.000MTs. However it seems that the plantation licorice is a good item in China. It is oversupply in China. But Recent years it is not allowed to collect the wild licorice and it needs license to the do business of licorice in China. Cowherb seed Not large supply but it seems that the application areas have been enlarged. 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. Peach kernel Production has been shrinking in the major output area due to various reasons. The major plantation areas 71 . The annual output is 20. present.000 hectares.
Henan Province and Zhejiang Province. accounting for 90% of the total production in the world. In China. Shandong Province. ginkgo plant distributes mainly in Jiangsu Province.200 hectares in China. Chrysanthemum The demand in China for this traditional medicinal materials is 1.000 years ago. Large head atractylodes rhizome The annual output of 白术 large head atractylodes rhizome is 14.000 hectares.000MTs. The total plantation area of ginkgo biloba in China is around 200. Inner Mongolia.800MTs. There are 46 kinds of ginkgo biloba species in China. 72 . the output is subject to the climate and is not stable. Gansu.000 hectares at present.000-4. The major plantation areas are Shanxi. The output of ginkgo nut is 12. The major plantation area is Zhejiang province.000MT/year.500-1. So the price is not stable either. Ningxia. The annual plantation area is 8. The ginkgo nut production in Jiangsu province is the largest in China. Ginkgo Biloba The Chinese people plants ginkgo biloba 4. The annual output is about 10. The biggest seed raising base in China is located in Shandong Laizhou.000 MT. The total production of ginkgo Leaves in China is estimated at over20. As it is available in the wild climate. The quality of Sichuan dahurian angelica root is better than that of in Anhui. accounting to about 90% of the world production. The output of dahurian angelica root in Sichuan is 3. Common fennel The plantation area in China is 4.000MTs. Shaanxi Hanzhong.include Sichuan and Anhui. etc.000MTs per year.
past. Should additional areas of interest have been revealed to xxxx following this report. we would of course be happy to discuss these with you for follow up work. 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. If readers are interested in specific sections or specific products. 73 . present and future. 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.
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