The China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE) has released its summary of China’s trading situation in the health sphere during the first three quarters of 2022. According to Chinese government customs statistics, China recorded a medical product trade surplus in the period, with the overall total at USD 171.52 billion, down 1.94% year-on-year (YOY). Imports reached USD 69.743 billion (+8.15%), while exports amounted to USD 101.78 billion (-7.83%). The decline in export value was attributed to decreased demand for vaccines and surgical masks, among other COVID-19 related materials. However, active pharmaceutical ingredients (APIs) and western medicines maintained their export momentum.
Western Drug Industry Performance
The western drug industry remained steady during the first three quarters, with an export volume of USD 50.402 billion (+3.82%), accounting for 49.52% of China’s pharmaceutical export market. APIs were the main export revenue generator, worth USD 40.52 billion (+38.22%). The export volume of finished drugs was USD 5.044 billion (+15.3%). Biochemical drugs saw a significant decline, with exports at USD 4.838 billion (-67.44%), including USD 930 million for human vaccines, down 92.04% from USD 11.688 billion in the same period last year.
Medical Devices Trade
The import and export volume of medical devices plummeted 14.6% YOY in the first three quarters to USD 75.968 billion. This decline was mainly due to the high base and the impact of the COVID-19 pandemic in the same period last year. The export volume was USD 47.148 billion (-19.31%), accounting for 46.32% of China’s pharmaceutical foreign trade market. The import volume was USD 28.82 billion (-5.57%). Exports of medical dressings, disposable consumables, and health care and rehabilitation supplies decreased, while the export volume of hospital diagnosis and treatment products increased by 2.36% YOY to USD 24.783 billion. The export volume of dental equipment and materials was USD 1.388 billion, up 1.38% YOY.
Global Trade Dynamics
Exports to key markets such as the European Union (EU), the United States, and ASEAN declined due to the drop in medical equipment exports. In contrast, exports to India, Japan, and South Korea increased by 8.41%, 3.35%, and 9.25% respectively, driven by the low proportion of COVID-19 prevention materials. Pharmaceutical trade with Russia was further strengthened, with exports up 39.43% to USD 2.407 billion. The total volume of pharmaceutical import and export trade with countries along the “Belt and Road” was USD 46.12 billion (-9.69%), while the volume in the Regional Comprehensive Economic Partnership (RCEP) market reached USD 34.448 billion (+3.56%).
Future Outlook
In the medium and long term, China’s exports of traditional Chinese medicines and western medicines are expected to continue on an upward trajectory. Medical devices are anticipated to overcome adverse factors and return to stable development. With the gradual recovery of the global supply chain, increased two-way investment in foreign trade, active communication at summit forums, and the continued positive effects of the BRI and RCEP, China’s pharmaceutical foreign trade is poised to maintain stable growth.-Fineline Info & Tech
