The Traditional Price Advantage of China's API Faces Severe Chanllenge

Because of API's development,China's medicine foreign trade had sustained brilliance,but now API faces serious problems at home and abroad.The internal problems are mainly for low level repeated construction,cause serious overcapacity campaign at a lower price,endanger the safety of industry,business order.The foreign aggressions are mainly is that the stiff competition from India,because India's support for export policy vigorously and continued currency devaluation,China's traditional API price advantage facing serious challenges,exacerbated by China's export the plight of the API.

In the first half of 2013 China's API export to major markets of the United States appearing to reduction year-on-year is an ominous sign.High-end medical field and huge technical threshold and investment,making the difficulty for industry structure adjustment.Although in the past two years China's export for preparations,diagnosis and treatment of hospital equipment have rapid development in high-end products,but because of a smaller base on primary products export structure influence is limited,China's pharmaceutical trade structure adjusted slowly and difficultly.

China's pharmaceutical market developped rapidly in recent years.According to the Chinese academy of social sciences'"Medicine,blue book:China pharmaceutical market report(2012).":In 2012 China's drug market size is 926.1 billion yuan.The blue book points out that 2005~2010,the compound growth rate is more than 20% of China's pharmaceutical market,expecting to 2013~2020,the Chinese medicine market scale will continue to high growth atan average annual rate of 12%.

The personage inside course of study points out,China's growth will remain around 20%,to 2020 will surpass the United States,Japan,becoming the world's largest pharmaceutical market.Last year imports keep high-speed growth seems to confirm these predictions.Chinese medical market at present is recognized as one of the fastest growing market,import growth should be able to expect.

As China's new version of GMP and GSP carried out with quality standard certification,coupled with the improvement of the export processing policy,China's drug regulatory tightening trend is irreversible.This is notonly a guarantee and improvement for the quality of chinese-made drugs need,also is the Chinese and foreign standards,to promote Chinese pharmaceutical better into the mainstream in the international market needs.Tighter regulation will inevitably produce pharmaceutical industry reshuffle,reducing quantity,improve quality,enhance competitiveness,"pain in at that time,in the long term",for it is necessary to ensure the healthy development of the industry.

By Grant