China - August 06, 2024

Improved market access attracts global pharmaceutical firms to China

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Water sports, beer, and a robust manufacturing industry...

Yes, this is Qingdao.

But now, this coastal city in northern China is making headlines for a new reason — its pharmaceutical sector.

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He Jingyi, Reporter:

"Behind me is a production base of AstraZeneca, one of the largest drug companies in the world."

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The news that a manufacturing city in China out-competed cities in the U.S. and Europe to win over AstraZeneca surprised many.

The British-Swedish biopharmaceutical company attributed this to China’s expanded openness in the healthcare services sector.

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Leon Wang, Executive Vice President, AstraZeneca:

"The Chinese government started its open-door and reforms policy almost 40 years ago. We can feel every day that the environment is improving and becoming simpler. Whenever we have issues, we can always turn to the government for help, and we always get a prompt reply."

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"Prompt reply" – I gained a deeper understanding of what the phrase means when I spoke with a local government official.

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Li Mingkuan, Director, Investment Promotion Department of Qingdao High-Tech Zone Management Committee:

"When AstraZeneca was set up here, we quickly helped them apply for production and operation license. Normally, this process takes over a month, but thanks to our efficient collaboration and prompt document submissions, the relevant authorities reviewed everything quickly. We managed to get the approval in just 12 days — a record time for Shandong Province."

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He Jingyi, Reporter:

"This welcoming business environment and attentive government services are drawing more and more healthcare enterprises to Qingdao and across China."

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Xie Cuicui, Ruibo Qingdao Biotechnology Co.:

"In the Qingdao High-tech Zone, there is a significant concentration of biopharmaceutical industry. You'll find well-known companies like AstraZeneca, as well as smaller, innovative enterprises such as Ruibo."

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Since entering the Chinese market in 2021, this South Korean company has greatly benefited as China has continuously eased market access, according to Xie.

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Xie Cuicui, Ruibo Qingdao Biotechnology Co.:

"Our bone repair products previously could only obtain registration certificates after completing clinical trials. Now, they can be certified post comparison with similar products – bypassing the need for clinical trials. "

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The policy relaxation significantly shortens the product-to-market cycle, enabling faster market entry – from five years to three years.

China has not just stopped here.

The just-concluded Third Plenary Session clarified China’s determination to relax the market access of the medical industry.

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Li Mingkuan, Director, Investment Promotion Department of Qingdao High-Tech Zone Management Committee:

"Officials from the Ministry of Commerce have already conducted surveys here. I believe that a series of measures will be introduced soon, and we look forward to more multinational enterprises investing in Qingdao and across China – as these policies get implemented."

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Qingdao's transformation exemplifies China's efforts to open its pharmaceutical sector, boosting the industry and healthcare.

[Restriction: No access Chinese mainland]