Business Opportunities in China

Summary

China has established a pharmaceutical industry structure, and has become one of the largest pharmaceuticals-producing countries in the world. As China joins the World Trade Organization (WTO), it will need to integrate more completely into the global economy. This international competition will place an intense pressure on the Chinese pharmaceutical industry, and further open the door to a lucrative market for non-Chinese companies, especially for pharmaceutical producers and manufacturers. Accession to the WTO will bind China by fundamental WTO principles, such as improved transparency and the strengthening of commercial legal procedures. China's WTO commitments include the tightening of rules on intellectual property, tariff concessions, and market access of non-Chinese service suppliers engaging in the distribution of pharmaceuticals. All such moves will create additional business opportunities for non-Chinese pharmaceutical companies in China, and in turn, place an intense pressure on the Chinese pharmaceutical industry.

This report will discuss the state of the Chinese pharmaceutical industry and the opportunities available to companies doing business in China, based on Chinese official statistics. Section 2 provides an overview of the development of the Chinese pharmaceutical industry, and its current status. Section 3 discusses the competitiveness of the Chinese pharmaceutical industry in the international market. Section 4 provides an analysis of the business opportunities for pharmaceutical firms considering alliances in China, based on this research and the commitments made by Chinese authorities at the time of accession to the WTO. The report concludes (section 5) by highlighting the significant points for consideration for companies looking to capture such business opportunities in China. The appendices (section 6) include two case studies that explore examples of a 'Sino-foreign equity joint venture' and a 'Wholly foreign-owned company' in China, references, a glossary of terms, the source data used in the figures, and a resources section.

Who should buy the report

This report is suitable to individuals responsible for and interested in:

• Board and executive management
• Business development
• Licensing/partnering
• Deal making
• Business strategy

Key points covered in this report:

• The development of the Chinese pharmaceutical industry and its current status
• Changes in the industry on China's accession to the WTO
• The competitiveness of the Chinese pharmaceutical industry in the international market
• The R&D and business opportunities for pharmaceutical firms considering alliances in China
• Significant points for consideration for companies looking to capture business opportunities in China.

Contents

• Foreword to the first edition-Xiaogang Wang, CMIC Co. Ltd., Japan
• Foreword to the first edition-Professor Xiaoming Wu, Chancellor, China Pharmaceutical University
• 1. Introduction
• 2. An overview of the pharmaceutical industry in China
  • 2.1 Economic reform and the open door policy in context
  • 2.2 The growth of the Chinese pharmaceutical industry
  • 2.3 The structure of the Chinese pharmaceutical industry
    • 2.3.1 Industry output
    • 2.3.2 Import and export
    • 2.3.3 The industry layout
  • 2.4 R&D in China
  • 2.5 Marketing approvals and manufacturing
  • 2.6 Non-Chinese Investment Enterprises in China
• 3. Competing in the international market
  • 3.1 Introduction
  • 3.2 Measuring trading competitiveness
  • 3.3 Potential trading competitiveness
• 4. Business opportunities for non-Chinese pharmaceutical firms in China
  • 4.1 Factors affecting business opportunities in China
    • 4.1.1 Chinese Authorities' commitments and administrative measures
    • 4.1.2 Chinese consumer demand for pharmaceutical products
  • 4.2 The factors bringing business opportunities
  • 4.3 How to capture business opportunities
  • 4.4 Which would be the profitable fields for non-Chinese pharmaceutical firms?
• 5. Conclusion
• 6. Appendices
  • 6.1 Case studies
    • 6.1.1 Sino-Swed Pharmaceutical Corp. LTD (SSPC)
    • 6.1.2 Pfizer (China) Pharmaceuticals Limited
  • 6.2 References
  • 6.3 Glossary
  • 6.4 Source data
  • 6.5 Resources
  • 6.6 Biographies
    • 6.6.1.Wu Yifeng