Many EU pharmaceutical companies are interested in exploring the potential of the Chinese market, which is predicted to be the world’s third largest by value in 2011 (Source – IMS Health 2010). With 29 provinces and regions plus four major municipalities China is a diverse, complex and decentralised market.  While the pharmaceutical industry is regulated nationally by the SFDA, each province has its own distinct characteristics and practices. 

The value of the Chinese pharmaceutical market in 2011 is predicted to be US$ 50 billion with a growth rate of 26% growth rate over 2010. The reasons for this rapid growth are complex but essentially the Chinese government has implemented a series of significant policy changes to improve the accessibility to healthcare for many more of the population. They have also funded research initiatives, deregulated some of the pricing structures and improved the distribution mechanisms within the country.