Recently, Nanfang Daily, a mainstream South China newspaper, produced a series of reports on the way in which traditional Chinese medicine (TCM) is being promoted to overseas markets. And one of its reports shed light into how GPHL is planning and expanding its overseas TCM market.

The following is an excerpt from the article:

“Culture should come first when it comes to promoting TCM in other countries. Only after people in a country have accepted TCM culture can a TCM enterprise enter the market,” said Li Chuyuan, President of GPHL, the biggest TCM manufacturer in China.

The Nanfang Daily report found that a number of Guangdong pharmaceutical enterprises have expanded their businesses into overseas markets. These enterprises adopted two major strategies: promoting TCM culture while investing huge in R&D for international recognition.

The market size of China’s health industry reached 1.7 trillion yuan in 2017. And the output of TCM industry hit 844.2 billion yuan, accounting for one third of the total of the pharmaceutical industry. However, TCM enterprises face a challenge in going global.

According to customs statistics, the export value of TCM products was  $3.6 billion in 2017, more than half of which were herbal extractions. The export value of Chinese patent medicine was only $250 million, accounting for less than 7 percent of the total.  

Nobel Winner Doctor Ferid Murad and the GPHL research team

Li Chuyuan said GPHL has been pushing forward global cooperation in R&D for years. Since 2008, its listed company, Baiyunshan, partnered with Zhong Nanshan, an academic from the Chinese Academy of Engineering, to start research on Ban Lan Gen (a TCM used to treat colds, flu and sore throats due to viral infection), making it the first TCM research project to be funded by the USA National Institutes of Health.

In line with the aims of the Belt and Road Initiative, GPHL has dedicated itself to the establishment of a global sales network. Its Huatuo Zaizao Pills (TCM used to promote blood circulation and removing blood stasis) has been the Chinese patent medicine with the highest export volume for more than ten years in a row, and is covered by health insurance plans in a number of countries. Wanglaoji herbal tea has been registered in 60 countries worldwide with an annual sales volume of over 20 billion yuan.

To promote TCM culture, GPHL is planning to build 56 Wanglaoji museums worldwide, the first of which first was established in New York on November 18th. It also constructed the Shennong Herbal Garden in Guangzhou which was a designated tour destination during the 2017 Fortune Global Forum and 2018 World Route.



Wanglaoji museum in New York

To guarantee the quality of Chinese herbs, GPHL built 61 GAP planting bases (Good Agricultural Practice of Medicinal Plants and Animals) nationwide, and is working with overseas scholars and enterprises to set international standards for TCM.

“The formulation of international standards help promote TCM in the global marketplace,” said Li Chuyuan, “By June this year, 28 criterion had been released, and 46 more will come out soon.”

Li added that it’s necessary to have a clinical evaluation system for TCM to ensure the quality of the drugs being developed.