China is the world’s second largest producer of chemical raw materials and the largest exporter. In 2006, the export of chemical raw material intermediates in China was 2.1012 million tons, an increase of 30.25% over the same period of last year. The export value was US$6.571 billion, an increase of 22.31% over the same period of last year, and continued to maintain a strong growth momentum. However, in a detailed view, the “amount†increase was less than the “quantity†increase by 7.94 percentage points, and the export price was falling. At the 7th World Pharmaceutical Raw Materials China Exhibition/Forum held in Shanghai not long ago, industry experts pointed out that under the background of economic globalization, China's chemical raw material pharmaceutical industry must realize a strategic shift from comparative advantage to competitive advantage and promote industrial upgrading.
Decrease of Comparative Advantage For a long time, China's raw material pharmaceutical industry has been engaged in international division of labor and cooperation with comparative advantages of low cost and low environmental protection requirements. The production volume has reached a certain scale, accounting for approximately one quarter of the global trade in raw material drugs. However, at present, this comparative advantage is gradually weakening:
First, the environmental protection costs of raw material medicine industry will rise sharply. China's "Pollutant Industry Pollutant Discharge Standards" has already been drafted, and it may be implemented from January 1, 2008. This mandatory standard will increase the raw material drug company's cost by 5% to 10%. The China Chemical and Pharmaceutical Industry Association pointed out that at present, most companies are unable to meet the requirements of the new standard, and the country must invest at least 10 billion yuan to transform existing devices.
The second is the adjustment of the renminbi to the US dollar. In the past two years, the appreciation of the renminbi has continued to accelerate, which is a major bearish for raw material export companies, and it is estimated that it will bring about more than 6% impact on pharmaceutical costs.
The third is the decline in export tax rebates. Starting from July 1, the state lowered the tax rebate rate for some of its export products, including chemicals and raw materials, and even cancelled it.
In addition, over the past few years, China's raw material exports have been frequently subjected to international anti-dumping and anti-monopoly sanctions, of which 50% are from India, 20% from the EU, and 10% from the United States.
The rise of competitors shows that the Asia-Pacific region will become the fastest-growing region for global raw material drug production in the next five years, with an average annual growth rate of 13.7%. The most prominent of these is India, which currently ranks third in the world in the total volume of bulk drug sales, and will maintain an annual growth rate of 19.3% over the next five years, reaching US$4.8 billion by 2010, surpassing Italy to become the world’s second-largest bulk drug producer. .
In general, the level of India's pharmaceutical industry has surpassed that of China. Although India can produce more than 400 raw material medicines and more than 60,000 kinds of medicines, which is similar to China's, and the amount of exports is basically similar, India’s product technology content is higher than that of China, and 60% of raw material medicines and 25% of medicines are exported. In the international market, while China mainly exports raw material medicines with low added value, Western medicine preparations export less than 4% of the total amount.
In order to meet the needs of the international competition, China's chemical raw material pharmaceutical industry must change and advance from a comparative advantage to a competitive advantage and promote industrial upgrading in order to win international competition. Wu Jianwen, vice president of Shanghai Pharmaceuticals Group Co., Ltd., proposed that, on the basis of maintaining comparative advantages, China should vigorously increase the efficiency of the allocation and use of resources and elements in China, and build and continuously improve its international competitive advantages. This is to ensure the continued development of China's bulk pharmaceutical industry. only way.
Experts believe that the key factor in upgrading from a comparative advantage to a competitive advantage is technological progress. On the one hand, it has increased investment in environmental protection and solved pollution problems at a high standard. On the other hand, it has increased investment in innovation and has embarked on a path of technological progress that suits China’s national conditions with less investment, less risk, and higher returns.
Experts suggest that in the process of participating in the international division of labor and collaboration, Chinese enterprises can actively seek out technologies that are intentionally or naturally exported, actively accept technological spillovers, and seek resources for expired global patents, accelerate independent research and development, and promote domestic bulk drugs. industrial structural upgrade. In addition, we must actively strive for a number of products through the international registration certification, become one of the target countries of multinational pharmaceutical companies outsourcing business, and strive to have more high-grade product exports. This has led to a multi-pronged approach to create a new international market competitive advantage for Chinese raw material drugs.
Decrease of Comparative Advantage For a long time, China's raw material pharmaceutical industry has been engaged in international division of labor and cooperation with comparative advantages of low cost and low environmental protection requirements. The production volume has reached a certain scale, accounting for approximately one quarter of the global trade in raw material drugs. However, at present, this comparative advantage is gradually weakening:
First, the environmental protection costs of raw material medicine industry will rise sharply. China's "Pollutant Industry Pollutant Discharge Standards" has already been drafted, and it may be implemented from January 1, 2008. This mandatory standard will increase the raw material drug company's cost by 5% to 10%. The China Chemical and Pharmaceutical Industry Association pointed out that at present, most companies are unable to meet the requirements of the new standard, and the country must invest at least 10 billion yuan to transform existing devices.
The second is the adjustment of the renminbi to the US dollar. In the past two years, the appreciation of the renminbi has continued to accelerate, which is a major bearish for raw material export companies, and it is estimated that it will bring about more than 6% impact on pharmaceutical costs.
The third is the decline in export tax rebates. Starting from July 1, the state lowered the tax rebate rate for some of its export products, including chemicals and raw materials, and even cancelled it.
In addition, over the past few years, China's raw material exports have been frequently subjected to international anti-dumping and anti-monopoly sanctions, of which 50% are from India, 20% from the EU, and 10% from the United States.
The rise of competitors shows that the Asia-Pacific region will become the fastest-growing region for global raw material drug production in the next five years, with an average annual growth rate of 13.7%. The most prominent of these is India, which currently ranks third in the world in the total volume of bulk drug sales, and will maintain an annual growth rate of 19.3% over the next five years, reaching US$4.8 billion by 2010, surpassing Italy to become the world’s second-largest bulk drug producer. .
In general, the level of India's pharmaceutical industry has surpassed that of China. Although India can produce more than 400 raw material medicines and more than 60,000 kinds of medicines, which is similar to China's, and the amount of exports is basically similar, India’s product technology content is higher than that of China, and 60% of raw material medicines and 25% of medicines are exported. In the international market, while China mainly exports raw material medicines with low added value, Western medicine preparations export less than 4% of the total amount.
In order to meet the needs of the international competition, China's chemical raw material pharmaceutical industry must change and advance from a comparative advantage to a competitive advantage and promote industrial upgrading in order to win international competition. Wu Jianwen, vice president of Shanghai Pharmaceuticals Group Co., Ltd., proposed that, on the basis of maintaining comparative advantages, China should vigorously increase the efficiency of the allocation and use of resources and elements in China, and build and continuously improve its international competitive advantages. This is to ensure the continued development of China's bulk pharmaceutical industry. only way.
Experts believe that the key factor in upgrading from a comparative advantage to a competitive advantage is technological progress. On the one hand, it has increased investment in environmental protection and solved pollution problems at a high standard. On the other hand, it has increased investment in innovation and has embarked on a path of technological progress that suits China’s national conditions with less investment, less risk, and higher returns.
Experts suggest that in the process of participating in the international division of labor and collaboration, Chinese enterprises can actively seek out technologies that are intentionally or naturally exported, actively accept technological spillovers, and seek resources for expired global patents, accelerate independent research and development, and promote domestic bulk drugs. industrial structural upgrade. In addition, we must actively strive for a number of products through the international registration certification, become one of the target countries of multinational pharmaceutical companies outsourcing business, and strive to have more high-grade product exports. This has led to a multi-pronged approach to create a new international market competitive advantage for Chinese raw material drugs.
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