Research On The International Strategy Of Chinese Traditional Medicine Industry

With both the globalization of the world economy and China opening to the outside world deepening increasingly, especially in recent years after China acceding to the WTO, Chinese medicine market has been severely impacted. As Chinese largest industry that has independent intellectual property rights, the Chinese traditional medicine industry has naturally become the new growth point and pillar of our medicine industry. On the other hand, It is more popular that we should have the people-centered and sustainable development concept, the consumption concept paying more attention to the quality of life of consumption and the health concept that keep health by enhancing immunity, the overall medical and esteeming the nature. So the internationalization of Chinese traditional medicine has become an inevitable trend.Chinese traditional medicine refers to that has been into the system of Chinese traditional medicine theory, and the function, the effect and the way to use can be expressed by the theory. It contains both the Chinese herbal medicines and drinks that can be used by Chinese traditional medicine theory. And the internationalization of the industry generally contains three meanings. These are products into the international market, establishing the industry in the world and leading products accepted worldwide.At present, there is a rising trend in the export of Chinese traditional medicine in China, but compared with the rising rate in the international market, it is not good. From the quantity, we only take 3 percent in the world herbal medicine market. From the export structure, the three continents that we exported to are the Asia, the America and the Europe. Besides the achievements and the potentiality, there are some problems in the study for the new medicine such as the weakness of the basic study, no complete system of technological innovation and the short of capital input compared with the developed western countries. On the other hand, long-term neglect of the protection of intellectual property rights results that a wealth of traditional resources of Chinese traditional medicine was washed away.We will use the four basic elements from the diamond model of the Porter's Theory of Competitive Advantage of Nations to analyze the competition superiority of Chinese traditional medicine industry. In factors of production, Chinese traditional medicine theory and the natural herbal resources are the deciding factor of competition superiority for our Chinese traditional medicine industry. Chinese traditional medicine has very stable consumer base. As the human health concepts and the pursuit of quality of life enhanced, overseas demand increased. In general, China now has certain strengths because there are a number of large-scale enterprises of Chinese traditional medicine. As the progress of our overall economy, the Chinese traditional medicine industry and its related industry groups have been considerable developed.The competition disadvantages of the internationalization of the Chinese traditional medicine industry include the following terms. It tastes bitter and inconvenient, have effect slowly and long course; Our Chinese traditional medicine has low added value and the quality is not so good; The study of quantity standards is lagged; The ability of the corporate for R&D and technological innovation capacity is poor; There are many differences in the cultures between the east and the west; Export channels is in utter disorder; The protection of intellectual property rights is ineffective.The opportunities of the internationalization of the Chinese traditional medicine industry lie primarily in the following three points. China has acceding to the WTO, so it can be very competitive and equal for us to join in the fair in foreign markets; The people's concept pf health has been changing; In the process to prevent and treat non-typical pneumonia, the function of Chinese traditional medicine is accepted worldwide.Chinese traditional medicine industry faces four major external threats. It doesn't have really entered the mainstream of the international market; A large number of "foreign Chinese traditional medicine" impact the domestic market; The problems of sustainable use of resources become increasingly prominent; Technical barriers to trade restricts seriously.Generally speaking, the environment of Chinese traditional medicine industry can be concluded that there are more advantages than disadvantages and more opportunities than threats. The internationalization of Chinese traditional medicine industry has many good international opportunities, but also very serious challenges.The ultimate goal of the internationalization of the Chinese traditional medicine industry is to enter the mainstream of the international market, to provide safe and effective Chinese traditional medicines for the health of humanity and to make it as a part of the mainstream of international medicine like the Western medicine. In order to achieve the ultimate goal, we should strive some achievements within a decade. The main to export is changed to finished product of Chinese traditional medicine and we can have 10-20 varieties entering into the international medicine market; A number of large multinational pharmaceutical companies with independent intellectual property rights, prominent main products, the international competitiveness should be built up; There should be about 10 large enterprise groups founded to achieve a multinational operation and they can sell above 500 million US dollars; The system of quality standards of Chinese traditional medicine should be established and improved to make our standards guide the development of the Chinese traditional medicine in the world.To this end, first we should identify market to segments and their strategies. Market I is the market that there are a lot of need of Chinese traditional medicine and high recognition of Chinese traditional medicine relatively in the market, mainly referring to the Southeast Asian market. The strategy should be to maintain the market and export more finished products of Chinese traditional medicine with high value-added. Class II is the market that there are a lot of need but low recognition in it, primarily referring to the North America and Europe market. The strategy should be to develop the market, send the culture to the areas and sell Chinese traditional medicine as the medicine and health products to the market quickly. Class III is the market that there is high recognition but lack of need in this area, mainly referring to the African, the Australian and the Oceania markets. The strategy is to maintain the status now and wait for an opportunity. Class IV is the market that there are lack of need and low recognition of Chinese traditional medicine, mainly referring to the Latin American countries. The strategy should be to increase the exchange of culture of Chinese traditional medicine and wait for the opportunity to enter the market.Secondly, determine the overall global strategy. Use the lever principle that means we will take the United States (or the European Union) as a fulcrum to stick up the global medicine market. With the rally, curative effect will help us open the new market and promote the internationalization of Chinese traditional medicine. To make the safeguard measures, first we will draw up from the point of the government. Establish the specialized organization to manage the export of Chinese traditional medicine; Implement the standardized management of the export of Chinese traditional medicine; Focus on cultural dissemination of Chinese traditional medicine; Construct a worldwide network to introduce Chinese traditional medicine; Establish the international standards of Chinese traditional medicine and make it base from our standards; Reform the education system of Chinese traditional medicine and strengthen the reserves of human resource; Strengthen the international exchanges and actively carry out academic exchanges and research cooperation; Grasp the quality from the foundation of Chinese traditional medicine; Emphasize on the development of the upper industries in the chain of Chinese traditional medicine industry; Strengthen the masses'understanding of Chinese traditional medicine to guarantee the domestic demand and to be good backing for Chinese traditional medicine industry. On the other hand, draw up from the point of the enterprises. Establish the union with both the domestic and the foreign enterprises of the industry to develop the modern Chinese traditional medicine; Form alliance, and establish and improve the standards of the industry and increase the control of the quality; Adjust the structure of the product and build the culture of the brand of Chinese traditional medicine; Adhere to the road of sustainable development; Correct the awareness of "foreign Chinese traditional medicine".In this paper, a new point at issue is put forward in the safeguard measures from the government that is the domestic masses should be the base for our internationalization of the Chinese traditional medicine industry. Chinese traditional medicine is Chinese essence, but also the wealth of all the mankind. It should make greater contributions to all the mankind.