Import and Export of Chinese Medicine in 2010 and Outlook for 2011

As the financial crisis gradually faded, the global market for Chinese pharmaceutical products demand to pick up, China's pharmaceutical foreign trade has accelerated the pace of growth, the international increasingly popular concept of green return also provides a rare opportunity for the development of Chinese medicine exports. In 2010, China's imports and exports of Chinese medicines were 2.632 billion U.S. dollars, an increase of 22.74% year-on-year. Among them, the export value of 1.944 billion US dollars, an increase of 22.78%; import value of 688 million US dollars, an increase of 22.61%.

Basic introduction of Chinese medicine import and export 1. Imports and exports of Chinese medicines generally increased, and extracts remained the main export force. In 2010, the export volume of extracts was US$815 million, which represented a year-on-year increase of 17.62%, accounting for 41.92% of the total export volume of Chinese medicines. It is still the main force for the export of traditional Chinese medicines; extracts The import volume was 130 million U.S. dollars, an increase of 7.16% year-on-year, accounting for 18.95% of the total imports of Chinese medicines. In 2010, the export volume of Chinese herbal medicines was 776 million U.S. dollars, an increase of 28.07% year-on-year, accounting for 39.89% of the total exports of Chinese herbal medicines. The export volume of Chinese patent medicines was 193 million U.S. dollars, an increase of 18.05% year-on-year; the import value was 218 million U.S. dollars, a year-on-year increase of 23.71%. The Chinese patent medicine trade has shown a deficit since 2008, and it has continued until 2010, and the deficit has increased. The export volume of health products was US$161 million, a year-on-year increase of 32.27%; the import value was US$203 million, an increase of 30.33% over the same period of last year. Although the import and export of health products had the largest year-on-year increase in the Chinese medicine commodity trade, it still presented a large deficit. From 2003 to 2010, it was a deficit (except for 2006). In 2010, the deficit amounted to US$42 million, a record high.

2. Exports of traditional Chinese medicines are dominated by traditional markets, and ASEAN has become a new bright spot. Japan, Hong Kong, the United States, and South Korea are still the main export markets for traditional Chinese medicines. In 2010, exports increased by more than 10%. The export volume of these four markets accounted for 48.71% of the total exports of Chinese medicine.

The EU is one of the world's largest vegetable drug markets and one of the major destinations for Chinese proprietary Chinese medicine exports. The Directive on Traditional Plant Drug Registration Procedures promulgated by the European Union on March 31, 2004 stipulated that all plant drugs sold on the EU market must be registered before April 30th, 2011 in accordance with the new regulations and obtain marketing approval. Without traditional drug registration, Chinese medicines that are currently circulating on the EU market in the form of food, health products, etc. will be prohibited from selling. In 2010, China’s exports to the EU of Chinese patent medicines amounted to US$12,523,800, a year-on-year increase of only 15%, which was far below the average annual growth rate of China’s exports of Chinese medicines to the EU of 25% in previous years. Although faced with problems such as high registration fees, small market size, and slower growth of exports to the European Union, some Chinese herbal medicine companies have not lost confidence in the EU market and have begun to carry out relevant registration work. Chambers of commerce are also urging “Foreign Trade Development Promotion Funds” to The project supports it.

In January 2010, the China-ASEAN Free Trade Area Agreement was formally implemented. Tariffs on traditional Chinese medicines between China and ASEAN countries have been greatly reduced. At the same time, customs clearance has become more convenient. Affected by this, in 2010 China's import and export volume of ASEAN's Chinese medicines increased by 28.05% year-on-year to US$422 million, which was higher than the annual average increase of China's imports and exports of Chinese medicine by 6 percentage points. Among them, exports of 337 million US dollars, an increase of 26.97%; imports of 085 million US dollars, an increase of 32.55%, both import and export showed rapid growth. Malaysia, Vietnam and Singapore are the major markets for my Chinese medicine exports. Malaysia imports mainly plant extracts from China, while Vietnam imports mainly Chinese herbal medicines. Singapore has a relatively complete Chinese patent medicine registration regulation. The Chinese patent medicine market is relatively mature and has become one of the main destination countries of China's proprietary Chinese medicine exports to ASEAN.

3. The structure of export enterprises presents a trend of diversification. The private sector still occupies the bulk. In 2010, a total of 3,263 export enterprises of traditional Chinese medicine products, 332 more than in 2009, private enterprises became the main force for exports, accounting for 48.02% of the export value; The amount accounted for 29.12%; the state-owned enterprises accounted for only 22.7% of the export value. It is worth noting that private enterprises account for more than 90% of private enterprises.

There were 1591 enterprises engaged in the import of Chinese medicine products, and US$302 million in foreign-funded enterprises, accounting for 43.84%; the import value of private enterprises was US$300 million, accounting for 43.64%; the imports of state-owned enterprises were US$85.58 million, accounting for 12.44%. .

The characteristics of Chinese medicine exports of various commodities 1 . The price hikes of Chinese herbal medicines have become the main line for the year since the beginning of 2010, and the prices of Chinese herbal medicines have increased significantly. On the national market, 84% of the 537 commonly-used Chinese herbal medicines have risen in price, and the increase is generally between 5% and 180%. Among them, the growth of the most important subtropical ginseng, the annual gains reached 353%; Codonopsis rose up to 162%; 37 rose 68%. Other Chinese medicine varieties such as Cordyceps sinensis, Angelica sinensis, etc. have seen different degrees of price increases.

Due to the increase in domestic prices of Chinese herbal medicines, the export of Chinese herbal medicines has increased by 25.9%, the export value has been 509 million US dollars, and the average export price has increased by 13.4% year-on-year. The prices of some medicinal herbs continued to rise, but the volume of medicinal herbs that had soared in price generally fell by 30% to 40%.

There are three major factors in the dramatic price increase of Chinese herbal medicines: First, from the beginning of 2010, the southwest region of China has experienced a series of natural disasters such as droughts, floods, and mudslides, which has directly caused a decrease in the supply of Chinese herbal medicines. Second, the demand for Chinese herbal medicines continues to expand. Third, hot money speculation prompted the irrational growth of Chinese herbal medicine prices. In the country's macro-control of the property market, the withdrawal of hot money from the property market amounted to no less than 300 billion yuan. This part of the funds flowed into the Chinese herbal medicine market, which caused hoarding and led directly to the rise in prices of Chinese herbal medicines.

2. Exports of extracts continued to rise In 2010, the export value of plant extracts was US$815 million, a year-on-year increase of 17.62%, which continued to maintain a growth trend, and for the first time in many years it occupied the top spot in Chinese medicine export commodities. Monthly exports of plant extracts were basically stable, and the export value remained at around US$65 million, indicating that the international demand for plant extracts remained strong.

From the perspective of export product structure, the largest increase in export value is natural pigment products. From the standpoint of single species, the export value of stevia extracts has increased significantly. Three of the top 10 export companies are exporting stevia extracts. In addition, the pigments used in foods, such as capsanthin and lutein, have also become hotspots for export growth in recent years.

The plant extract industry has a certain clustering effect, and the plant extracts industries in each province have their own characteristics. For example, Shandong Province is mainly engaged in the production of plant extracts for food additives, while Zhejiang and Shanghai are mainly plant extracts for the production of medicinal and health products. From the statistical data, in 2010, the export of food additives and flavors and plant extracts of the provinces, exports have increased substantially, such as Shandong and Jiangxi, Stevia extract export growth is greater, Yunnan exports of flavor and fragrance also More obvious. Exports to provinces and cities for the export of pharmaceutical and health products used plants, exports have declined slightly, such as Zhejiang and Beijing.

In 2010, the main export markets of China's plant extracts were still Japan and the United States, and the export value exceeded US$100 million. However, the export growth rate has been weak, both below 10%. The most striking is the EU market. EU countries, mainly Germany, France, and the United Kingdom, imported more than 60% of their plant extracts in 2010. Most of the products are used for plant medicines and food supplements. The production of health products, foods, and natural health products in various countries requires extracts of natural plants and are used in large quantities. In particular, due to the expiry of the EU Herbal Registration Directive, it is very difficult for most Chinese companies in the country to complete registration in the form of pharmaceuticals in a short period of time. Therefore, exporting Chinese medicine extracts to the EU is a way out. In 2010, China's export value to EU products was US$182 million, a year-on-year increase of 49.15%, which was much higher than the average growth rate of China’s export of plant-extracted products. However, it should also be noted that in recent years, international requirements for heavy metals and pesticide residues have become more stringent, and the production technology and product quality of Chinese herbal extracts need to be continuously improved, and the product structure needs to be further optimized.

3. The trade deficit of Chinese patent medicines continued to deficit In 2010, the import and export of proprietary Chinese medicines in China amounted to US$411 million, a year-on-year increase of 21%. Among them, exports were 193 million U.S. dollars, an increase of 18.05% year-on-year; imports were 218 million U.S. dollars, an increase of 23.71% year-on-year; Chinese patent medicine trade continued to have an export deficit since 2008, and the deficit increased in 2010.

In 2010, China's exports of proprietary Chinese medicines reached 143 countries and regions. Among them, countries and regions with a larger increase in exports were Singapore, Malaysia, and Hong Kong; and countries with large export declines were Benin, Russia, and South Korea. The main sources of imports of Chinese patent medicines in 2010 were Germany, Hong Kong, and Japan. Among them, German and Japanese imports increased by 52% and 52% respectively.

China's Hong Kong, Japan and the United States are still the major export markets for proprietary Chinese medicines in China. The three countries account for about 57% of China's proprietary Chinese medicine exports. Hong Kong is the most concentrated area of ​​Chinese patent medicine exports. The export ratio is as high as 41.7%, and the amount is 80.49 million US dollars, an increase of approximately 19.53% over the same period of last year. The main reasons are: First, Hong Kong has a strong consumer demand for proprietary Chinese medicines; Second, some Hong Kong merchants have subsidiaries in the United States and Europe, and Hong Kong has become a transit station for Chinese patent medicines for global exports.

4. Imports and exports of health products increased significantly, and the deficit was still based on customs statistics. In 2010, exports of health products in China reached US$161 million, an increase of 32.27% year-on-year; imports reached US$203 million, a year-on-year increase of 30.33%. There are 98 exporting countries and regions, of which, the countries with larger increases in exports are the United States, Vietnam, and Indonesia; the countries and regions where exports have fallen significantly are Saudi Arabia and Hong Kong.

The United States and Japan are the major exporters of China, accounting for more than 60% of China’s exports of health products. However, in recent years, the growth of China’s exports of health products to Japan has slowed down, mainly due to the stricter requirement for specific foods for health care in Japan. This has led companies to invest more in research and production, and the benefits are not significant. According to statistics, the development of Japan's entire health food is not optimistic. According to statistics, the total market volume of Japanese healthy foods has gradually declined since 2005, and it is expected that before 2012, the market will gradually slow down. The recovery of the entire market will not be until 2013. In 2010, China’s exports to Japan’s health products were US$30.5 million, a year-on-year increase of only 2.59%. Affected by factors such as low consumption in the Japanese health care products market and reduced orders, China’s fresh royal jelly and fresh royal jelly powder in Japan in 2010 Exports showed a certain degree of decline year-on-year. China’s exports to traditional markets such as North America and the European Union continue to increase.

In 2010, the export of Chinese health products was dominated by fish oil, inositol, seaweed and royal jelly products. The major export provinces and cities were Zhejiang, Guangdong, Shandong, and Jiangsu. Among them, Shandong, Shanghai, and Guangdong had a larger increase in exports. Anhui And health care products in Qinghai fell sharply. Foreign-funded enterprises and private enterprises are still the main force in the export of health products, accounting for 89.56% of China's exports of health products.

Prospects for 2011 With the continuous growth of the demand for green products in the international market, Chinese herbal products will continue to grow in export. The dominant products are mainly plant extracts, Chinese herbal medicines, and health products. Foreign traders importing directly into the cultivation base of Chinese herbal medicines are becoming increasingly standard and prevalent, and this mode of reduction in intermediate links has increased the cost of countering domestic labor, resulting in lower profits due to increased investment in export inspections, transportation, and insurance. Played a supporting role. While the international market continues to maintain strong demand for Chinese herbal products, we also need to see the introduction of the US cGMP (Dynamic Drug Production Management Regulations) ordinance, the implementation of the electronic database verification and management of the import of Korean herbal medicines, and the EU's traditional herbal registration process. The implementation of the "management", these legal measures are placed in front of the traditional Chinese medicine companies "examination paper", how to improve internal strength through the exam, and actively respond to challenges is our Chinese medicine industry in 2011 and the next period of time needs to be solved important issues.

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