Chinese Herbal Medicines

   Market economy brings unprecedented opportunities and development to the industry of Chinese herbal medicines. A system for the production and circulation of Chinese herbal medicines has been preliminarily formed in China with the production of Chinese medicinal materials as its base, Chinese herbal medicament industry as its main body and Chinese herbal medicament commerce as its link. China is rich in medicinal resources with more than 5,000 medicinal herbs determined. There are over 600 bases in China for the production of Chinese medicinal materials. About 5 million mu of land produce Chinese medicinal materials every year (excluding the area under woody medicinal materials) with an output at about 400,000 tons. 684 pharmaceutical factories for herbal medicaments in China produce more than 4,000 Chinese patent herbal medicines in over 40 drug forms. In addition, over 1,500 plants produce processed Chinese herbal materials. The total output value of Chinese herbal medicament industry in China was expected to reach 27.9 billion yuan in 1997. There are more than 30,000 wholesale and retail shops for herbal medicines in China with the total sales value of 13.39 billion yuan at home in 1995. With their proved curative effect and less side effect, Chinese herbal medicines are increasingly popular among the Chinese people.

   By reforming of its backward mode of production, Chinese herbal medicament industry is marching rapidly on the road of modernization. Many enterprises have passed GMP attestation, and several scores of commercial enterprises have passed GMP check and acceptance of their products. According to the principle of grasping large enterprises, selecting good enterprises and supporting strong enterprises, "An Action Plan for (Top 50) Key State-Owned Enterprises in the Chinese Patent Herbal Medicament Industry" has been worked out. A number of enterprises with good performance are operating in the commercial circle and "reliable pharmacies" with quality service enjoy reputation across China.

   The Chinese herbal medicament trade comprises the production of Chinese medicinal materials, Chinese herbal medicament industry (including procession of Chinese herbal materials, production of Chinese patent herbal medicines, and manufacture of machines for making them) and Chinese herbal medicament commerce. It is a trade combining agriculture, industry, commerce , production, supply and marketing into one. A system for the production and circulation of Chinese herbal medicaments has been almost formed with the production of Chinese medicinal materials as its base, Chinese herbal medicament industry as its main body and Chinese drug commerce as its link.

   The development of Chinese herbal medicament trade is based on the production of Chinese medicinal materials. In the principle of a rational distribution and key construction, a number of bases have been set up to produce quality and authentic Chinese medicinal materials. There are more than 600 bases in China for the production of Chinese medicinal materials. 5 million mu of land is cultivated for production of Chinese medicinal materials with an output at 400,000 tons, hitting a record high and basically keeping balance between supply and demand. China used to spend a large amount of foreign exchange in importing nearly 100 varieties of medicinal materials every year. As some species of Chinese medicinal materials have been successfully introduced, and wild resources of Chinese medicinal materials and ecological environment have been protected, imported varieties are gradually reduced. Pearl, cow-bezoare, lemongrass, nutmeg and other varieties that used to mainly rely on import are self-sufficient and the surplus can be exported.

   The achievements made in the Chinese herbal medicament industry are even more noticeable. At the early stage after the founding of the People's Republic of China, professional factories making Chinese patent herbal medicaments were situated in herbal pharmacies with simple and crude equipment and backward technology. Energetically supported by governments at various levels and relevant departments, a number of Chinese patent herbal medicament factories have been set up in succession. Through strengthening technical transformation, improving productive condition, enhancing quality of enterprises and reinforcing strict quality control, the productive level of them has reached a new high. By the end of 1995, there were 1,020 Chinese herbal medicament industrial enterprises in China (of which there were 158 large and medium-sized ones) with a total output value of 17.9 billion yuan (of which the output value of the large and medium-sized enterprises amounted to about 60%). In this industry, conventional mode of production has been basically changed, administrative and technical standard greatly enhanced, and the speed of modernization of enterprises accelerated. With the readjustment of the structure of Chinese medicinal products , the productive condition ,the level of technology and equipment and the total quality of products have been greatly enhanced. A number of quality products, famous trademarks and enterprises have come forth. A batch of factories and workshops producing Chinese herbal medicaments are up to the GMP standard. Advanced technologies have brought quality products. A large number of Chinese patent herbal medicaments with good quality, high curative effect, less side effect and easy administration have been produced in succession.

   Systematically the marketing channels have been formed in the Chinese herbal medicament commerce with an important link connecting production to consumption. The condition and facilities of the wholesale corporations and retails shops have been greatly improved. A number of old famous herbal pharmacies have resumed and developed their unique features. By the end of 1995, there were nearly 2,700 corporations and 20,000 retail shops at various levels in China . Their sales income reached 17 billion yuan, and profits and taxes in this industry and commerce stood at 2.7 billion yuan.



-- source from State Administration of TCM, China


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