Business Society, February 4: The global financial crisis that swept the world in 2008 plunged numerous industries into a “deep winter.” However, the pharmaceutical industry, as a unique sector characterized by rigid demand, although also impacted by the financial crisis, continues to enjoy an overall optimistic outlook for development.

During the year, China’s traditional Chinese medicine (TCM) import–export sector also experienced several cycles of peaks and troughs, yet maintained a generally stable growth trajectory. Total import–export value reached US$1.752 billion, hitting a new all-time high and representing a year-on-year increase of 14.08%, which was 3.5 percentage points higher than the growth rate in 2007. Specifically, imports totaled US$443 million, up 24.46% year on year—5.2 percentage points higher than in 2007—while exports amounted to US$1.309 billion, up 10.94% year on year—2.8 percentage points higher than in 2007—resulting in a trade surplus of US$866 million for TCM products.

Asia remains the most important market for my traditional Chinese medicine trade.

In 2008, as many as 163 countries worldwide engaged in trade in traditional Chinese medicine with China. Asia remained the primary import–export market for TCM products, with total trade value reaching US$1.13 billion, up 11.79% year on year; the average unit price increased by 31.93% over the previous year. Trade in TCM with Asian countries accounted for 64.41% of China’s global TCM trade. Among Asian markets, Hong Kong and Japan were China’s main trading partners for TCM, with trade values of US$326 million and US$295 million, respectively. Other leading Asian destinations included South Korea (US$98.21 million, down 5.19% year on year), Vietnam (US$80.95 million, up 56.32% year on year), Malaysia (US$61.06 million, up 51.65% year on year), and Indonesia (US$56.98 million, down 9.41% year on year). Together, these six countries and regions recorded TCM import–export trade with China exceeding US$50 million each, accounting for 81% of China’s total TCM trade with Asia.

Europe’s import and export trade in Chinese medicinal products with China totaled US$273 million, up 21.25% year on year, with average prices increasing by 3.37% and accounting for 15.59% of the total. Among European countries, Germany, France, Spain, the Netherlands, the United Kingdom, Italy, and Switzerland each recorded bilateral trade in Chinese medicinal products exceeding US$10 million; together, these seven countries accounted for 86% of China’s total trade in such products with all European nations. Specifically, trade with Germany amounted to US$78.66 million, with France to US$44.59 million, with Spain to US$39.59 million, with the Netherlands to US$27.22 million, with the United Kingdom to US$19.83 million, with Italy to US$15.10 million, and with Switzerland to US$10.25 million.

Asia and Europe are the primary export markets for traditional Chinese medicine products.

In 2008, China’s traditional Chinese medicine products were exported to 154 countries worldwide, the same number as in 2007. Among these, exports to 86 countries recorded year-on-year growth, a decrease of 9 percentage points compared with 2007.

Exports to Asian countries totaled US$856 million, up 11.3% year on year, with average prices increasing by 44.53% and accounting for 65.42% of total exports. Exports to Japan and Hong Kong each exceeded US$100 million, reaching US$277 million—a year-on-year increase of 31.83%—and US$194 million, respectively, representing a year-on-year decline of 12.6%. Five other markets recorded export values exceeding US$10 million: exports to South Korea amounted to US$92.46 million, down 7.93% year on year; to Vietnam, US$70.45 million, up 47.22%; to Malaysia, US$54.65 million, up 49.47%; to Taiwan, US$37.95 million, up 12.28%; and to Singapore, US$35.65 million, up 24.12%. Exports to Asia were primarily composed of crude and processed Chinese medicinal materials, extracts, and proprietary Chinese medicines, totaling US$423 million, US$268 million, and US$118 million, respectively.

Exports to Europe totaled US$209 million, up 15.46% year on year, accounting for 15.99% of total exports. Germany was the largest destination, with exports reaching US$42.68 million, a year-on-year increase of 10.03%, driven by an 11.5% rise in average unit price; exports to Germany were primarily in the form of extracts and traditional Chinese medicinal materials. Spain ranked second, with exports totaling US$38.94 million, up 56.08% year on year, while France recorded US$33.05 million, a year-on-year increase of 20.62%. Together, these three countries accounted for 55% of total exports to Europe.

Latin America Shows Advantages in the Import Market

In 2008, the number of countries importing traditional Chinese medicinal products into China reached 92, with 61 of them recording year-on-year growth in import value, accounting for 66.3%. Among the import markets, in addition to the traditional Asian regions, Latin America surged ahead of Europe to become the second-largest market. Imports from Asian countries totaled US$270 million, up 13.36% year on year, with average unit prices increasing by 6.04%. Imports from Hong Kong, Indonesia, Japan, Vietnam, and Singapore each exceeded US$10 million, with imports from Hong Kong reaching US$132 million; imports from the other four countries were all below US$27 million. The main categories of imports from Asian countries were proprietary Chinese medicines, seaweeds and marine algae, licorice extracts and tinctures, and dried and fresh medicinal plants, among which “proprietary Chinese medicines” accounted for an overwhelming share, totaling US$148 million.

Imports from Latin America totaled US$65.9 million, up 78.29% year on year, with seaweed and marine algae accounting for the bulk at US$37.79 million and fish oil, fats, and their fractions representing another US$27.40 million. Together, these two product categories accounted for 99% of total import value.

Imports from Europe totaled US$63.92 million, up 45.03% year on year, with the main imported products being Chinese patent medicines, gum arabic, and fish oil, fats, and their fractions, accounting for US$34.02 million, US$7.38 million, and US$6.84 million, respectively.