Photo/Shetuwang

Mar. 19 (NBD) -- A traditional Chinese cough syrup is riding a wave of popularity in New York thanks to its amazing curative effect, but awkwardly, the syrup wasn't labeled as medicine in the U.S., but as herbal supplement. 

The export value of traditional Chinese medicine (TCM) was only about one tenths of that of western medicine in 2017, according to statistics compiled by the China Chamber of Commerce for Import & Export of Medicines & Health Products ("CCCMHPIE") based on customs data. China is still the major TCM consumer at present.  

TCM overshadowed by western medicine in export value

Data shows the value of China's TCM exports was 3.64 billion U.S. dollars last year, up 2.07 percent year over year. Of that, the size of herbal extracts exports jumped 4.33 percent to 2.01 billion U.S. dollars, while that of Chinese patent drug exports grew by 11.03 percent to 250 million U.S. dollars. The export value of Chinese medical herbs and medicinal slices continued the negative growth, showing a decrease of 2.23 percent. 

In sharp contrast, the value of western medicine exports rose by 12.62 percent year over year to 35.456 billion U.S. dollars. Of that, crude drug exports were worth 29.117 billion U.S. dollars, up 13.71 percent, while liquid preparation exports were valued at 3.456 billion U.S. dollars, up 8.32 percent. 

John Lin, a partner at consultancy Roland Berger, told NBD Saturday that globally speaking, western medicine still remains in a dominating position in the pharmaceutical market. Asia Pacific regions where have been profoundly affected by Chinese culture, such as Japan, are major destinations of TCM exports. In America and European countries, TCM hasn't yet made much of an impact. 

This is because TCM therapies adopt an entirely different demonstration system from western medicine, Lin noted.

A Chinese person settled in the U.S. said to reporter that TCM products are rarely seen in drugstores operated by local brands there, but mostly sold in those run by Chinese.

China still major consumer of Chinese patent drugs

Because of policy barriers, a lot of Chinese patent drugs can only be sold as supplement in America and European countries, rather than medicine. 

However, in China, thanks to policy boost in recent years, Chinese patent drugs is seeing fast growth. 

The niche sector, as one of the three pillar sectors of the TCM industry, will embrace explosive growth over the next few years, China-based Founder Securities predicted.

A report by research and consulting service institution ASKCI Consulting also outlined a similar picture. It estimated that the output of Chinese patent drugs will hit up to 3.657 million tonnes this year. 

Data from China's leading research institute Sinohealth CMH showed the retail sales of Chinese patent drugs reached 127.7 billion yuan (20.2 billion U.S. dollars) last year, far higher than the value of TCM exports. It can be seen the domestic market is still the major consumer of Chinese patent drugs. 

Clues can also be found in some TCM exporters' sales.  

The top three markets of Beijing Tong Ren Tang Chinese Medicine Co., Ltd. in 2017 were China's Hong Kong, mainland China, and China's Macau, followed by Australia, Canada, Singapore, and New Zealand. 

A source with the securities department of Chinese pharmaceutical company Mayinglong Pharmaceutical Group Co., Ltd. told NBD that the company's distribution network is mainly in China though it is selling products in Africa, Southeast Asia, Russia, and the U.S. 

According to Zhao Lisheng, chairman of Hong Kong-headquartered Kingworld Medicines Group, TCM and western medicine therapies have their own merits. Chinese patent drugs will see an increase in popularity overseas in future with the improvements in product quality, production technology, and convenience in use. Zhao also noted he accelerating population aging and pursuit of a healthy lifestyle is expected to expand the market of TCM products.  

Email: lansuying@nbd.com.cn