Health & Beauty

In the past two years, driven by the demand for prevention and control of the new crown pneumonia epidemic, my country's pharmaceutical international trade has grown rapidly, becoming one of the main driving forces for the stable growth of my country's foreign trade, and has played a key role in stabilizing foreign trade and foreign investment. However, the current new crown pneumonia epidemic is still spreading, and the international situation is still changing. The development of international pharmaceutical trade is facing many risks and challenges, and there are many uncertainties in the future situation.

First of all, the uncertainty brought about by the new crown pneumonia epidemic is still the biggest variable in my country's foreign trade in medicine this year. On the one hand, affected by the spread of the Omicron variant, the scale of new coronary pneumonia infection has further expanded; on the other hand, the increase in the vaccination rate of the new coronavirus and the emergence of oral therapeutic drugs have brought dawn to the effective control of the epidemic. However, some countries and regions have already announced the relaxation of all epidemic control measures, which will lead to a surge in the number of infections. The spread of the epidemic may slow down the decline in the export of my country's anti-epidemic materials, and the relaxation of control means that these countries and regions will resume work and production on a large scale, and the rigid demand for my country's anti-epidemic materials will decrease.

Secondly, inflation, the continuous appreciation of the RMB and the sharp rise in logistics costs have brought enormous pressure to foreign trade. In the past two years, in order to speed up economic recovery, most countries and regions in the world have implemented monetary easing policies. The prices of basic production factors such as oil, coal, metals, and grain have been rising, and the prices of upstream raw materials and key components required for the production of pharmaceutical products have also increased. The subsequent rise has pushed up the cost of my country's pharmaceutical production. The continuous increase in the exchange rate of RMB against the US dollar has also brought a great impact on the export of my country's pharmaceutical products, especially on the manufacturers of raw materials and low-end medical devices that rely on price advantages to compete for overseas markets. In addition, affected by factors such as cross-border logistics, manpower and epidemic prevention costs, it is common for companies to increase their export revenue without increasing their profits.

Once again, international political and economic frictions and black swan events continue. Political and economic frictions with China provoked by some countries have brought a certain negative impact on my country's pharmaceutical exports. For example, the United States requires a series of measures to ensure the safety of its domestic drug supply chain and reduce its dependence on APIs in other countries and regions; India has initiated more than ten anti-dumping investigations on APIs and pharmaceutical intermediates in China to support the development of its own API industry. The confidence of Chinese enterprises in exploring overseas markets has been hit, and some projects have had to be suspended or cancelled.

Finally, domestic and foreign supervision has become stricter, and enterprises are facing dual regulatory pressures. Internationally, the new EU Medical Device Regulation (MDR) and In Vitro Diagnostic Medical Device Regulation (IVDR) will be implemented in May 2021, with new regulations focusing more on clinical performance, enhancing the traceability of medical devices and improving transparency for patients. Generally speaking, with stricter regulations and stricter procedures, many companies queuing up to apply for EU CE certification are facing the problem of re-registration, which will bring problems such as increased costs, longer certification cycles and increased compliance risks to Chinese export companies; Although the US FDA has resumed normal inspection work in July last year, it still has a backlog of overseas drug production inspection projects, and the FDA has not vigorously promoted remote inspection methods. It is expected that the inspection queue will not be fundamentally alleviated in 2022, which will This has hindered the plans of some Chinese pharmaceutical companies to develop the US market. Domestically, the regulatory laws and regulations on drugs, medical devices, and cosmetics are becoming more and more perfect, and the requirements are getting higher and higher. The implementation of the medical device registrant system, the adjustment of the medical insurance drug catalog, the expansion of volume purchases, and the anti-monopoly of raw materials, etc. Operation has put forward higher requirements.

Even in the face of many risks and challenges, the multiple support and guidance of my country's government policies, the solid foundation of industry enterprises and the resilience to resist risks are all "Dinghaishenzhen" that promotes the steady development of my country's pharmaceutical foreign trade. At the end of 2021 and the beginning of 2022, the "Implementation Plan for Promoting the High-quality Development of the API Industry", "The 14th Five-Year Plan for the Development of the Medical Equipment Industry" and "The 14th Five-Year Plan for the Development of the Pharmaceutical Industry" have been successively released, which will help the upgrading and development of my country's pharmaceutical industry. The path is indicated. In January this year, the General Office of the State Council issued the "Opinions on Doing a Good Job in Cross-Cycle Adjustment and Further Stabilizing Foreign Trade", which proposed 15 measures to support foreign trade enterprises to reduce costs, create a more convenient environment for foreign trade, and promote the stable development of foreign trade. International trade has provided more support.

my country has put forward a new development strategy for the new era, and is moving towards a more in-depth and higher-level reform to further raise life and health issues to an unprecedented strategic height. The international trade status of my country's pharmaceutical industry will be further enhanced.