Traditional Chinese Medicine Industry International Competitiveness And Influence Factors

Traditional Chinese herbs have a long history, which is one of treasure with traditional characteristics in China. It is also an important traditional industry and an important part of pharmaceutical industry in China, which the herb products sold to more than 160 countries or regions of the world. But over the years, many countries have paid attention to the development and popularization of plant medicine, some plant medicine products from developed countries with high technological content and adapt to the international standard already take the world ’s most of plant medicine market share. Meanwhile, in recent years, many developed countries practice green technical barriers, improve the plant medicine import standards. Chinese traditional medicine industry has to face many challenges in this field. According to the classical trade theory and national competitive advantage theory, this essay studies the competitive level and then analyses the factors that affect the international competitiveness of Chinese medicine industry. It also makes the empirical analysis for further study of traditional Chinese medicine industry and how to seize the opportunity. This statement has an important theoretical and practical significance for striving to improve the competitiveness in the international market.The essay from the characteristics of traditional Chinese medicine industry development and present situation of imports and exports, describes the present situation of traditional Chinese medicine industry overall level of development. Then it studies the international competitiveness of Chinese herb industry level from the descriptive analysis the influence factors of competitive. And it calculates international competitiveness with professional level and the trade competitiveness index. This articles also uses Porter’s “diamond”model, regression analysis and empirical analysis of the factors to research the international competitiveness and ranking traditional Chinese medicine industry international competitiveness. In addition the article also uses TOPSIS method to study the differences of influence factors in China. Finally, it gives the author’s suggestion.The empirical results show that the TSC is 0.5 and the influence factors of Chinese traditional medicine industry exports are mainly assets total and the number of practitioners of traditional Chinese medicine industry, rather than traditional Chinese medicinal materials planting area. This means that the traditional Chinese medicine industry international competitiveness are influenced by traditional Chinese medicine(TCM) industry assets, labors and market share, rather than the raw materials and land which have weak influence on traditional Chinese medicine industry of international competitiveness. In China, eastern coastal areas of traditional Chinese medicine industry has stronger international competitiveness than other areas. However, some of the traditional Chinese medicine(TCM) province which has rich resources of medicinal materials, have no corresponding advantages. This essay also gives some corresponding advice of this situation.