Pharmaceutical industry is one of the leading industries in China, covering chemicals, prepared Chinese medicines, medical apparatus and instrument, hygienic materials, packing materials, and pharmaceutical machinery. It made 31.7 billion RMB of total output value and earned 4.3 billion through export and 1.4 billion of total profits in 2000, ranking first in China in terms of the above economic indicators.

Zhejiang attaches importance to 36 varieties of products, 14 of which each makes an annual output value of more than 0.1 billion RMB, including vitamin E, Kanglaite injection, chloromycetin,Carbamazeprine, Bailing capsule. It ranks among the first in terms of the output of Captopril, Enalapril and chloromycetin for their hi-tech and low cost, causing direct impact on the price of these products in international market. It boasts a number of large-scale groups and companies well-known at home and abroad, such as Zhejiang Pharmaceutical Co.Ltd., Zhejiang Haizheng Group Co, Zhengda Qingchunbao Group Co, East China Pharmaceutical Group Co. Zhejiang Haizheng Group has won FDA certification for four of its anticancer drugs and is one of the few enterprises that have won FDA certification.

Zhejiang plans to launch the National-level Chemicals Export Base Project, TCM Modernization Project and New Drug Harbor Project during the 10th Five-Year Plan period.

National-level Chemicals Export Base. Zhejiang is one of the major provinces in China that manufacture raw chemicals and the export of its chemicals accounts for 25% of the national total, with quite a large number of highly competitive products likeCaptopril, Enalapril, chloramphenicol, paracetamol, etc. The National-level Chemicals Export Base is to be based in Jiaojiang of Taizhou and extend to Jinhua and Shaoxing. With an estimated funding of 10 billion RMB, it is expected to become a major production base of chemicals and intermediates in China with an output value of 40-50 billion RMB within five years.

TCM Modernization Project. Zhejiang is a big producer of TCM resources, ranking first in China in terms of TCM industry. The TCM Modernization Project aims to provide TCM products in conformity of modern practices of drug administration and to meet the great demand of the world herbal drug market through an all-round transformation of traditional Chinese medicines. As a result, a large number of highly competitive TCM (herbal medicine) manufacturing groups will emerge and will contribute to the making of famous brands of TCM products in Zhejiang.

New Drug Harbor Project. The New Drug Harbor is to be based in Hangzhou and to be engaged in new drug research, development and production, for Hangzhou, provincial capital of Zhejiang, is endowed with geographical and human resources advantages and boasts developed pharmaceutical industry. It is planned to form a complete system for hi-tech production, R&D and guarantee services by the end of the 10th five-year plan.

Since reform and opening up, Zhejiang spares no effort in developing foreign-oriented pharmaceutical industry, attracting such world famous pharmaceutical groups as MerckTerumo to invest in Zhejiang with its sound investment environment and large market potential. Foreign-funded pharmaceutical enterprises have won both fame and fortune in Zhejiang.