In recent years, with the intensification of competition in the API industry, Chinese API companies have begun to transform from the production of extensive low-end intermediates to sophisticated high-end products, and continue to extend and transfer to the downstream supply chain. , domestic deep processing capabilities are gradually increasing. At the same time, domestic companies have also begun to actively obtain international certification, and the quality of raw materials has also been greatly improved. As of September 12, 2009, the number of COS certificates for Chinese APIs that have obtained European EDQM certification is 206, and as of January 12, 2010, the number of DMF documents for my country's APIs registered with the US FDA has reached 674. Although China's APIs have obvious advantages in the international market, judging from the operation situation in 2009, there are still many obstacles and deficiencies in the development of my country's APIs. First of all, the haze of the financial crisis has not yet dissipated, and international purchasing power is slowly increasing. China’s API sales will not see significant growth in the short term. Secondly, the currency depreciation of major export destination countries and competitor countries, as well as the pressure for RMB appreciation, have reduced the price competitiveness of China’s APIs in the international market and made exports more difficult. Third, the financial crisis has intensified trade protectionism, and international trade barriers and intellectual property disputes have further worsened the environment in some of China's export markets. Fourth, some drug quality incidents have seriously affected the international reputation of my country's APIs and have a negative impact on China's exports. Fourth, international oil prices continue to rise, rising prices of raw materials and excipients, food shortages, environmental pressures derived from overcapacity, and the implementation of new pharmacopoeia and new GMP have all increased corporate investment and increased the production cost of APIs. Fifth, Europe and the United States have implemented API supply chain management and strengthened GMP review and enforcement, which has raised the threshold for China’s API exports. Fifth, compared with India, Chinese API companies are weak in DMF documents, COS certification and cGMP certification, and lack the cultivation of international marketing and product series for APIs. All of these will have a certain adverse impact on China's API exports in 2010. Although we are facing many challenges, we are still very optimistic about the development prospects of China's APIs and our confidence remains firm. First of all, the global pharmaceutical market value will increase by 4~6% in 2010, the growth rate of emerging pharmaceutical markets is expected to reach 12~14%, and the growth rate of China's pharmaceutical market may exceed 20%. Secondly, the world encourages the use of generic drugs, blockbuster drug patents are gradually expiring, and the generic API market is booming, all of which provide development opportunities for China, where generic APIs dominate. Third, in the next four years, the demand for generic APIs in China, India, Latin America and Central and Eastern Europe will grow at a compound annual growth rate of more than 14%, which provides huge opportunities for China, the world's largest producer of generic APIs. growth opportunities. Fourth, many of China’s raw material pharmaceutical varieties occupy a high market share in the international market and have obvious scale advantages. They cannot be replaced by other countries in the short term. Fifth, China still has comparative advantages in production and labor costs. Its complete range of mature manufacturing technologies and sufficient scientific and technological talent resources have laid a solid foundation for the sustainable development of China's APIs. Sixth, the efforts of Chinese companies to avoid homogeneous competition and develop specialty APIs, as well as the efforts of many companies to target the markets of developed countries, actively pass high-end market certification, and continuously improve the quality of export products, will expand the export space of China's APIs. In short, in 2010, opportunities and challenges for China's APIs will continue to exist. However, with the continuous recovery of the world economy and the continuous introduction and implementation of national policies to encourage exports, we predict that China's API exports will likely remain at 15% in 2010. growth of about %. The development of China's APIs is always full of hope. The Medical Insurance Chamber of Commerce will continue to strengthen coordination and services to promote the sustained and healthy development of China's production and trade of APIs.