Chinese pharmaceutical industry under pressure from Indian rivals

The Chinese pharmaceutical industry is experiencing serious losses, due to overproduction, and decreased competitiveness of domestic drugs in the global market, which is caused by the intensive pressure from Indian rivals, says China’s Chamber of Commerce for Import and Export of Drugs.

According to China’s General Customs Bureau, export prices for domestic drugs in the first half of the current year fell by 43%, compared to the same period of2011, which became one of the weakest results for the Chinese pharmaceutical industry over the last few years.

One of the reasons for this is the ever rising power of the Indian pharmaceutical industry. Using cheap labor, advanced technologies and state support, the Indian pharmaceutical industry has been able to produce relatively cheap, high-quality drugs, which have experienced high demand in the global market, driving out Chinese rivals.