Study On The Competitiveness Of Enhancing Chinese Herbal Medicine Industry In Dingxi, Gansu Province From The Perspective Of Supply Chain

Chinese is a large agricultural country and its agricultural development has been alwayshighly valued by the Party and the government. From2004to2014, the CPC CentralCommittee has issued "central No.1document" related to agriculture, rural, farmers for11consecutive years, which fulfils a decisive function in accelerating the development ofagriculture and the rural economy and increasing farmers’ incomes. Since agriculture is thelifeline of a country, the competitiveness of agricultural products determines a nation’scompetitiveness and is the foundation of competitiveness of the nation and the region.The traditional Chinese medicine industry is the cultural treasure of the Chinese nation.Nowadays, when all the nations pay increasing attention to plant medicine with increasingdemands, Chinese government, enterprises and scholars will meet the challenges that how todevelop Chinese traditional medicine industry in larger scale and strength. Chinese herbalmedicine industry is a strategic emerging industry with resources and knowledge advantage inChina. In Gansu province, it develops firstly as a characteristic industry and it is also one offoundational industries in Dingxi, Gansu province. Meanwhile, accelerating the developmentof Chinese medicine industry has become the strategic choice for developed countries to stayahead and for developing countries to strive for catch-up.Since Gansu province is located in the inland, with a vast region, fragile ecologicalenvironment, the lower level of modernization, the lower ranking of agriculturalcompetitiveness compared with other provinces, it has a large gap between the developedcountries and the domestic developed provinces in the quality of agricultural products, deepprocessing, agricultural industrialization, brand differences. In the face of increasingly fiercecompetition, Gansu province should rely on regional advantages and resources to change thetraditional organization structure of agricultural industry fundamentally, realize therationalization of agricultural industry organization, vigorously develop the regionalcharacteristic agriculture, improve the competitiveness of agricultural industry, cultivateregional brands and enhance the competitiveness of the agricultural products.In such background, after having responded positively to the call of the national hightechnology industry development, Gansu provincial Party committee and the provincialgovernment optimize layout of industry development in Gansu Province and treat the Chineseherbal medicine industry as one of five regional characteristic advantage industries in GansuProvince, and also a strategic emerging industry given priority to the development in Dingxi.Through the strong support from all levels and the efforts of relevant enterprises themselvesin Gansu province, the medical industry of Gansu province has made a considerable progressand outstanding achievements. However, traditional Chinese medicine industry in Dingxi in s has encountered many problems during its development, such as worse raw material quality,poor quality monitoring, less utilization of wild medicinal resources, poor infrastructure, lowthe degree of organization of Chinese herbal medicine production, heavy the circulation link,disordered channel, poor mechanism of collaboration of supply chain, deficient degree ofgovernment guidance and weak motive force of lead ing enterprises, which seriously affect thedevelopment and competitiveness of the Chinese medicine industry and urgently need to besolved by using a new development model.Based on supply chain theory, the dissertation combines the theory of comparativeadvantage and industrial competitiveness to analyze the present situation of Chinese medicineindustry of Gansu province and Dingxi overall. On the basis of comprehensive and in-depthanalysis of Chinese medicine industrial and supply chain in Dingxi City, it builds a newmodel of supply chain of Chinese herbal medicine industry in Dingxi. Having evaluated theindustrial competitiveness Chinese medicinal materials in Dingxi, it presents thecountermeasures to improve the industrial competitiveness of medicinal materials inDingxi,Gansu province and provides references and suggestions to cultivate and improve thecompetitiveness of regional industries.