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"Global demand for China's pharmaceuticals is strong," said Cui Bin, deputy secretary-general with the China Chamber of Commerce for Importers and Exporters of Medicines and Health Products.

It is predicted that the global pharmaceutical market will grow by five percent annually over the next few years.

"An increasing number of Chinese pharmaceutical companies, in particular privately-owned firms in coastal areas, are eyeing the international market," Cui said.

According to statistics from China's customs, 15,271 domestic companies were involved with medical exports last year.

"More multinational companies are also expected to enter the Chinese industry by mergers or direct investment," he said.

In 2005, China's export of pharmaceutical products totaled US$13.8 billion, up 28.14 percent from a year ago.

"This is the first time the growth rate surpassed the country's overall export growth," Cui said.

Chinese pharmaceuticals now reach over 214 countries and regions across the world.

But the country's exports are mainly focused on pharmaceutical ingredients, Cui added.

"We've also narrowed the trade deficit in medical equipment trade, reflecting the rapid growth of the domestic medical equipment industry," he said.

In a bid to boost China's pharmaceutical industry, the chamber of commerce is scheduled to hold an exhibition focusing on medicinal ingredients in Shanghai in June.

The exhibition, known as CPhI China, will focus on exports.

"The annual CPhI plays an important role in promoting contact between Chinese pharmaceutical producers and foreign players, China's pharmaceutical trade and the domestic market," Cui said.

(China Daily April 12, 2006)