"Along The Way" Medical And Trade Import And Export Growth In The Harvest Period Exceeded 20%

"In recent years, China's pharmaceutical enterprises have made great achievements in the" emerging markets along the belt "and entered the harvest period. In March 12th, Wang Maochun, vice president of the Chinese medicine and health products import and Export Chamber of Commerce, said in an interview with the twenty-first Century economic report reporter.

According to the latest data released by the Chinese medicine and health products import and Export Chamber of Commerce, in 2019, China's pharmaceutical enterprises exported the "one belt and one way" area and the national market 22 billion 306 million US dollars, an increase of 21.63%, an increase of 7% over the global average, accounting for 29.1% of the global export volume.

In Wang Maochun's view, the implementation of the "one belt and one way" initiative has provided a new historical opportunity for promoting the internationalization of China's pharmaceutical industry. As of the end of January 2020, China has signed 200 cooperation documents with 138 countries and 30 international organizations to build "one belt and one road". Many companies, including Neusoft medical and colon pharmaceuticals, are actively distributing the "one belt and one way" market. For example, Neusoft medical cooperation in the "one belt and one way" related countries and regions to more than 50, the proportion of more than 80%; Hong Hong pharmaceutical industry set up the "one way project office", focusing on the development of "along the road" along the market.

The construction of "one belt and one road" will play an important role in promoting the more balanced, inclusive and sustainable development of the global pharmaceutical industry while promoting the diversification of the pharmaceutical trade. Diversified economic and trade cooperation will promote internal and external linkage and deepen international capacity cooperation. Wang Maochun analysis.

Imports and exports increased by more than 20%

According to China Customs statistics, in 2019, the total import and export of Chinese medicines and health products amounted to 145 billion 691 million US dollars, up 26.85% over the same period last year. Among them, exports amounted to 73 billion 830 million US dollars, an increase of 14.6%; imports of US $71 billion 861 million, an increase of 42.5%; and the external trade surplus of US $1 billion 970 million, a decrease of 85.92%.

Among them, the "one belt and one way" national market has an active import and export market.

In 2019, China's medical and health products export area and the national market were 22 billion 306 million US dollars, an increase of 21.63%. India, Vietnam, Indonesia, Thailand and Russia are the top five exporters, accounting for 54.18% of the total.

From the perspective of export products, western medicine exports 14 billion 957 million US dollars, the highest proportion, accounting for 66.89%. Among them, the export of API is US $12 billion 876 million, western medicine is US $1 billion 5 million, biochemical medicine is US $1 billion 70 million, and medical equipment products are exported to US $6 billion 320 million, including 3 billion 178 million US dollars for diagnostic and therapeutic equipment, 50.3%, and 1 billion 83 million US dollars for traditional Chinese medicine. Accounting for 61.03%.

In March 13th, Ceng Yali, consultant of the division of life sciences and Pharmaceuticals Division of correy, told reporters in an interview with twenty-first Century economic report that the growth of the economy and population of many emerging market countries along the "one belt along the way" is obvious. The demand for better medical care is growing, while the domestic pharmaceutical industry is relatively weak.

These conditions are prerequisites for a good pharmaceutical market with external demand. The rapid development of these markets has provided many business opportunities for foreign pharmaceutical companies, especially for the Chinese enterprises with perfect supply chain. " Ceng Yali pointed out.

In addition, according to the twenty-first Century economic report, China's growth in the "one belt and one way" national pharmaceutical export also increased significantly. China Customs statistics show that in 2019, China imported $6 billion 514 million from the "one belt and one way" area and the state, an increase of 26.09%. Singapore, India, Malaysia, Israel and Thailand are the top five importers, accounting for 72.66% of the total.

In this regard, Wang Maochun analysis, import growth, especially the sharp growth of medical equipment is mainly domestic demand is strong, trade scale expands rapidly, and with China's series of new policy and priority review of drugs and equipment and other policies landing, import drugs approved speed obviously accelerated, and promoted import demand growth.

According to IQVIA data, in 2018, the scale of China's pharmaceutical market reached US $137 billion, which is expected to reach about US $170 billion by 2023, and will continue to grow steadily above the global average growth rate in the next five years. The huge potential of China's pharmaceutical market has brought huge impetus to foreign pharmaceutical companies to enter or deepen the Chinese market. At the same time, the opening degree of China's market has gradually improved, the policy environment has been improving continuously, and the series of policies on reforming the examination and approval system, encouraging innovation drugs and importing rare drugs have also increased the confidence of foreign enterprises to enter China.

"One belt and one road" has become a new growth point of medicine and foreign trade.

China's growth in import and export of "one belt and one way" national medicine is over 20%, far higher than that of the domestic pharmaceutical industry. National Bureau of statistics data show that in 2019 1-12 months, China's pharmaceutical industry revenue reached 2 trillion and 390 billion 860 million yuan, an increase of 7.4% over the same period last year, the industry realized a total profit of 311 billion 950 million yuan, an increase of 5.9% over the same period last year.

In this regard, in Wang Maochun's view, this means that China's pharmaceutical enterprises are deeply ploughing the "one belt and one road" emerging market, with remarkable results, and are entering the harvest period.

In Wang Maochun's view, although the laws and regulations of different countries are different, the huge population base, huge market capacity and escalation of the free trade agreement have laid a solid foundation for medical and health cooperation. In recent years, China's cooperation with central and Eastern Europe, ASEAN and Africa in the field of "health and health" is in the ascendant. This reflects the high level of attention paid by the senior authorities to strengthen the "one belt and one way" health and health cooperation and shows good prospects for development.

In November 2019, the CPC Central Committee and the State Council issued the guiding opinions on promoting the development of high quality trade, pointing out that we should deepen our efforts to build trade cooperation with the "one belt and one way" country and expand markets in Asia, Africa and Latin America. In the future, the "one belt and one way" market will become a new growth point of China's medicine and foreign trade.

Wang Maochun believes that the construction of "one belt and one road" will play an important role in promoting a more balanced, inclusive and sustainable development of the global pharmaceutical industry while promoting the diversification of the pharmaceutical trade. Diversified economic and trade cooperation will promote internal and external linkage and deepen international capacity cooperation.

In Ceng Yali's view, "along the road" along the line as a global emerging market, is the world's major pharmaceutical companies want to enter the market. Some of the emerging market countries with pharmaceutical industries, such as Russia and Brazil, strongly support localization. Countries with weak or no foundation in the pharmaceutical industry rely mainly on imports.

"At this stage, the market of" all along the road "will still be dominated by generic drugs. Large scale generic drug companies in Europe and the United States, India, China, Israel and local producers will compete in the market. At the same time, with the further accumulation of drug innovation output in China, more cost-effective Chinese innovative drugs and biological analogues will have the opportunity to expand the market of "one belt and one road" in the future, and we have seen that domestic enterprises are actively carrying out their practice through various ways. Ceng Yali analysis.

According to the twenty-first Century economic report reporter, with the support of the relevant national policies, many pharmaceutical companies in China are actively distributing. For example, as early as 2015, the strategic layout of the high Africa Group on the African continent has been established in the East African Kenya, North Africa, Egypt, West Africa, Nigeria and South Africa. The company started exporting products to Kazakhstan in 2003, and its Kazakhstan plant was formally put into operation in July 1, 2014.

PWC believes that the layout of the "one belt and one way" market in Singapore, Poland and Kazakhstan is conducive to the development of Chinese pharmaceutical enterprises. In particular, PWC recommends that Chinese enterprises enter the pharmaceutical industry in Kazakhstan, because Kazakhstan's domestic pharmaceutical industry is lagging behind in the production of qualified generic drugs, not to mention biological analogues. The country relies heavily on imported drugs. Kazakhstan's local government is offering preferential tax policies to attract foreign companies to invest in the pharmaceutical industry.

As for the reasons for technology transfer and investment in Kazakhstan, the officials in charge of the pharmaceutical industry indicated that there are more developing countries along the "one belt along the way", and the medical conditions are generally lagging behind. Through developing trade and investment activities in these countries, we can share advanced technology and products of domestic medicine with them. In this process, enterprises can also grow and expand.

However, the person in charge said frankly that social and cultural differences have increased the difficulty of communication and promotion, and that the endogenous economies of developing countries are not strong enough and exchange rate fluctuations are also major risk factors.

In Ceng Yali's view, expanding the market of "one belt and one road" can help domestic pharmaceutical enterprises to solve some excess capacity and make large-scale, and gradually grow into a global pharmaceutical company. This is also consistent with the expansion trajectory of pharmaceutical enterprises from local, regional and global supply.

"Pharmaceutical companies are facing great challenges in opening up these markets." Ceng Yali analyzed, "after all, these countries have many differences in terms of economic level, living habits, political system, regulatory consistency, transparency of information, CMC requirements, commercial default risk and market regulation."

Zou Xiaobing, deputy general manager of China Pharmaceutical and Health Products Co., Ltd., said that the demand for quality and service of medical device products in the international market is getting higher and higher, and the relevant regulations and requirements are becoming more stringent and convergent. For example, in 2013, the European Commission issued an audit and evaluation proposal for medical devices, which made inspections of manufacturers and their suppliers, that is, without prior notice to enterprises, to verify the enterprises' compliance. Iran, Sri Lanka, Egypt, Brazil and other countries require that the installed capacity of developed countries reach more than a certain amount or get us FDA certification before they can start the registration process.

To this end, Ceng Yali suggested that in order to further consolidate and consolidate the early development results of the "one belt and one road" development, China's pharmaceutical enterprises should make preparations for dealing with multinational regulatory affairs and global supply chain management in advance so as to ensure the safety and compliance of the drug supply chain and avoid potential laws and business risks caused by regional differences.

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