Recently, China has severely criticized the threat of US President Donald Trump to impose additional tariffs on US$200 billion worth of Chinese imports. China is also preparing to further open its pharmaceutical market in order to seek cooperation with neighboring India.

Indian trade officials said in New Delhi that Indian companies are expected to fill the gap in China's demand for generic drugs (generic drugs), software, sugar and some rice varieties. Chinese Foreign Ministry spokesperson Hua Chunying said this week that China is taking measures to give Indian pharmaceutical companies greater market access. "China and India are conducting good communication on opening the Chinese market to India for pharmaceutical activities and the dialogue and cooperation between the pharmaceutical industries of the two sides." Hua Chunying said, "The pharmaceutical trade between the two most populous countries in the world is growing. , The relevant government agencies of the two sides are actively formulating specific measures to promote Sino-Indian pharmaceutical trade cooperation and allow more Indian drugs to enter the Chinese market. 

The relevant departments are formulating the development of Sino-Indian bilateral pharmaceutical trade cooperation and promoting the expansion of Indian pharmaceuticals’ entry into the Chinese market. We believe that the expansion and deepening of China-India pharmaceutical trade cooperation will further enhance the health and well-being of the two peoples."

According to officials of the two countries, no specific agreement has been signed, but there is strong hope for the sale of Indian medicines. Industry data shows that India has a dominant position in the global generic drug market. The export scale of drugs in 2017/18 (April-March) reached $17.3 billion, including exports to the United States and the European Union. However, industry data shows that exports to China account for only 1%.

It is not clear what detailed terms the parties are working on. But Dinesh Dua, chairman of the Pharmaceutical Export Promotion Committee (Pharmexcil) under the Indian Ministry of Trade, told Reuters that China is considering an accelerated review process for Indian drugs that have been approved in Europe, which promises to make a drug application decision within six months. According to a government document seen by Reuters, Pharmaxcil and the China Chamber of Commerce for Importers and Exporters of Medicines and Health Products will also sign an agreement to simplify the drug clearance procedures and help Indian companies find Chinese partners. "Our internal understanding is that the relevant Chinese authorities have issued instructions that Indian suppliers that have been approved by the European Union should quickly grant industrial drug licenses so that they can enter the Chinese market within six months," Dua said.

Before the press conference, Sino-Indian pharmaceutical relations have become closer. According to reports, in June this year, China agreed to help train Indian pharmaceutical companies to understand China's drug regulatory system. Many Indian drugmakers' products have been sold to the European Union. According to Pharmaxcil, the EU is already one of the key export markets for Indian medicines, accounting for about 15% of India's overall medicine exports in 2016/17. If Chinese regulators can quickly approve it, it will allow Indian companies to expand their revenues. At this time, their sales in the US market are being hit by pricing reviews and regulatory issues. Over the years, some major Indian pharmaceutical companies, such as Sun Pharmaceutical Industries, Lupin Ltd and Aurobindo Pharma Ltd, have been working hard to expand into the Chinese market. China is the world's second largest pharmaceutical market after the United States.

The announcement of the cooperation is also partly attributable to the influence of the movie "I am not the God of Medicine", a Chinese film about the smuggling of cheap anti-cancer drugs from India to China, which once again triggered a nationwide debate about the high price of anti-cancer drugs. . China has been trying to expand the use of anti-cancer drugs by cutting prices. Recently, China has just reduced the import value-added tax on all anti-cancer drugs to 3%. Many innovative anti-cancer drugs, mainly manufactured by Western pharmaceutical companies, have also been added to the national insurance plan after substantial price cuts. In addition, China is preparing to start a new round of negotiations to include more drugs in medical insurance.

Chinese Ambassador to India Luo Zhaohui said that in May of this year, China exempted 28 kinds of drugs, including all anti-cancer drugs, from import tariffs. This move will help reduce the current trade imbalance between India and China. Regarding the overall reduction of tariffs, Hua Chunying said: "Since the Boao Forum for Asia was held this year, China has announced a series of measures to expand opening up, actively expanding imports, and substantially reducing import tariffs on automobiles, parts and consumer goods, and fighting cancer. Drugs and other drugs have also implemented zero tariffs. This is a positive measure taken by China based on its own development needs and has been welcomed by relevant countries. China will continue to further expand its opening up according to its own pace, goals and development needs." An official from the Indian Ministry of Trade said , Indian pharmaceutical companies have approximately 250 product applications waiting to be approved by the CFDA. The recent trade dispute with the United States may also help push China and India together.

Article source: As U.S. trade war escalates, China rolls out red carpet for Indian drugmakers