On a global level, the pharma industry in China has garnered a lot of interest because of the vast population the country boasts of. With a population that is slowly growing older, and the spread of illnesses and diseases rising higher, various pharma industry giants from the U.K. and the U.S. are investing in China’s pharma industry heavily.
Interestingly, China has found the introduction and widespread import of foreign pharma drugs to be excessively worrying. For this reason, China’s plan for the future, namely the “Made in China 2025” plan is designed to incorporate changes in the pharma industry in China.
What is the Made in China 2025 Plan?
Drafted in two years by MIIT – Ministry of Industry and Information Technology, with the help and feedback of around 150 different experts from China Academy of Engineering, the Made in China 2025 plan highlights the systematic upgrade of the Chinese industry. The aim is to make the Chinese industry efficient enough to allow it to meet the challenges and demands of being in the highest areas of global chains for production.
The plan highlights tangible goals that the Chinese industry needs to meet by the year 2020 and the year 2025. The main industries that are highlighted in the plan fall into the following categories:
- Information Technology – Advanced And New
- Robotics and Machine Tools – Automated
- Aeronautical and Aerospace Equipment
- High Tech and Maritime Equipment
- Transport – Modern Rail Equipment
- Vehicles – New Energy
- Power Tools and Equipment
- Agricultural Tools and Equipment
- Medical products and Bio-pharma – Advanced
While these are the major areas of focus, the aim is to improve the overall industry of China by focusing on these aspects.
What is in the Works for the Pharma Industry?
With one of the largest pharma industries in the world, the Made in China 2025 plan is bringing about major changes. With the plan, government funding is possible in high-tech fields, including in China’s pharma industry that is in need of such investments. One of the major challenges that China’s pharma industry faces is finding adequate funding for their research and development. The expenses are at times high enough to lock many Chinese companies out of it.
Under the new plan, research and development in the pharma industry is changing, but it is a change that could be prohibitive and expensive, particularly for smaller companies. For them, the main recourse would lie in turning towards bigger pharma industries, allowing them to increase their market share. To aid research and development, the plan has also finally allowed the use of research and data from different foreign trials when seeking approval for the distribution of drugs in China.
Interestingly, the rate of foreign investments in China’s pharma industry has significantly increased with many marking it as a healthy investment due to the steady ROI it has to offer. In 2017, China’s pharma industry also made bigger waves when China joined the ICH – International Council for Harmonization. Many looked upon it as an indicator that China’s pharma industry is finally meeting the global standards and benchmarks that make it a solid investment opportunity.
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