CHINA LEX PHARMA LAW NEWSLETTER
Vol. 2 , No. 8- March 09, 2001
TOPICS THIS ISSUE:
- China's Pharmaceutical Industry Booming
- Shandong Medical Industry's Profits Soar
- China to Reform Health Care System
- Retail Drug Stores Have Own Rules
- Green Tea Does Not Cut Cancer Risk
- Hong Kong Residents Prefer Western Medicine
China's Pharmaceutical Industry Booming
China's pharmaceutical industry set records in production, sales, exports and efficiency last year.
According to the State Economic and Trade Commission, the gross output value of the pharmaceutical industry totaled 233.2 billion RMB (US$ 28.21 million) in 2000, an increase of 20 per cent compared to 1999. The industrial added value came to 57.8 billion RMB, up 22 per cent, or 11 percentage points higher than the average yearly increase in the Chinese industrial sector as a whole.
The sales/production ratio of the pharmaceutical industry was 94 per cent in 2000, a slight increase over the previous year; the sales income obtained by industrial enterprises totaled 175 billion RMB, up 18.4 per cent; and the profits amounted to 14.38 billion RMB, up 35 per cent.
The sales attained by pharmaceutical marketing businesses reached 113.5 billion RMB in 2000, up 19.4 per cent over 1999; and profits came to 761 million RMB, up 10.8 per cent.
According to Chinese Customs, China's imports and exports of pharmaceutical products in 2000 totaled US$ 6.4 billion, an increase of 16.4 per cent over the previous year. Exports made up US$ 3.8 billion of the total, up 13.8 per cent; and imports were at US$ 2.6 billion, up 18.7 per cent.
(Source: ASIA PULSE)
Shandong Medical Industry's Profits Soar
The medical industry in Shandong Province claimed a total output of US$ 1.9 billion last year, up 29.73% compared to 1999.
Industrial value added for last year stood at US$ 488 million, an increase of 28.23% over 1999 figures, and the largest ever increase since records of this sort have been kept.
The Production to Sales Ratio reached 97.26%, an increase of 1.7% from the previous year. Commercial sales totaled US$ 1.09 billion, an increase of 18.73%. Commercial retail sales reached US$ 184 million, an increase of 34.21% over the previous year.
Profits were up by 68.13% to US$ 89.75 million, making the medical industry one of the fastest growing industries in the province.
(Source: State Drug Administration)
China to Reform Health Care System
China will soon start a nationwide reform of its medical care system this year, aiming at implementing a medical insurance policy in over 90 per cent of its cities.
It is estimated that the reform will benefit 80 million citizens.
China has started an experimental reform in sections of some provinces since 1994. It is estimated that these reforms have already affected 43 million people.
Medical insurance, premiums for which will be co-submitted by the individuals and their work units, will pay medical costs that exceed a certain amount.
The present medical system, which has been the sole responsibility of the work units and the local governments, has been a great financial burden.
Moreover, bankruptcies of large and medium-sized State-owned enterprises have resulted in the loss of coverage for medical costs of employees.
The new system, with insurance companies as the permanent payer of medical costs, will solve the financial difficulties of low-income and laid-off workers in the event of serious illnesses.
Wang Dongjin, Minister of Labor and Social Security, said all those cities yet to implement the new medical care policy were required to work out an implementation draft this month, and all the needed policies and regulations by the first half of this year. A few cities will be permitted to start the reform in the third quarter of this year.
The initial statistics from the 25 provinces and regions already under test operations reveal that the companies collected a total of 15.8 billion RMB (about US$ 1.9 billion), while only having to pay out 12.2 billion RMB - a savings of 10% of the total.
Twenty-six large and medium-sized cities such as Beijing, Guangzhou and Dalian have set up an insurance system related to work injuries, with 4,200 workers now being covered.
(Source: Xinhua News Agency)
Retail Drug Stores Have Own Rules
China's State Drug Administration issued the Provisional Rules on the Establishment of Retail Drug Stores on February 9, 2001, publicly announcing the details of the legal requirements for the set-up of retail drug stores in China.
The Rules have 10 articles and have been effective as of the date of promulgation. Among the regulations are the requirement that pharmacies have professional staff such as practicing pharmacists, appropriate business premises, equipment, and storage facilities. In addition, the stores should maintain a sufficient stock of drugs and be able to supply drugs twenty-four hours a day.
State and local drug administrations are the watchdogs for retail drug stores.
(Source: http://www.lawbook.com.cn/law)
Green Tea Does Not Cut Cancer Risk
For years, green tea has been promoted for its ability to prevent stomach cancer, the second leading cause of cancer deaths worldwide. However, a new study suggests that this reputation is undeserved.
Doctors in Japan and Massachusetts reported in Thursday's New England Journal of Medicine that their analysis of 419 cases of stomach cancer among northern Japanese shows the risk of developing a stomach tumor is unrelated to the amount of green tea a person drinks. The researchers also found no link between stomach cancer and the consumption of coffee or black tea.
Another reason earlier studies may have found higher rates of cancer among people who do not drink green tea, the researchers said, is that people with abdominal symptoms caused by undiagnosed stomach cancer may reduce their consumption of green tea years before their cancer is diagnosed.
Salty foods such as salted pickles and salted fish have been linked to the tumor. Eating fruits and vegetables seems to protect against stomach cancer.
(Source: China Daily)
Hong Kong Residents Prefer Western Medicine
In a survey from Hong Kong University that includes more than 500 participants, it was found that the majority of Hong Kong residents seek out Western medicine for their ailments as opposed to Traditional Chinese Medicine. The study claims that only 4.3% of all residents would put their faith solely in Chinese medicine if they fell ill, while 58.4% rely entirely on Western medicine. Of all respondents, 24% say they use a combination of Chinese and Western medicine.
Most respondents agreed that Chinese medicine is effective in strengthening the immune system but claim that it works too slowly in battling illnesses. Moreover, there was a general sentiment that Western doctors were more professional than their Chinese counterparts.
The Hong Kong government is in the process of creating a system that would require Chinese doctors to become licensed. The system would implement several regulations including a required exam for doctors with fewer than ten years' experience.
According to the survey, of those who claimed that they only use Western medicine, 30% said that they would consider using Chinese medicine if such a licensing system were to exist.
(Source: Deutsche Presse-Agentur)
Lehman Lee & Xu
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The China Lex Pharma Law Newsletter is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
