Aldo Lau

MAR 452 Export and Import

April 8, 2004

Chinese Medicine

            Traditional Chinese Medicine in the modern world is rapidly gaining popularity and recognition as an alternative medication.  The medicinal field of science actually holds no differentiator between the practices of the Western tradition against the Chinese tradition, but each has its own distinctions.  Traditional Chinese Medicine includes acupuncture, herbal remedies, and maintenance of the chi within the human body system.  The antiquated practice of medicinal science in China has been revamped and standardized by the government of the People’s Republic of China.  In an increasingly internationalized business economy, the Chinese people in their world Diaspora have brought with them the arts of Traditional Chinese Medicine and incubated its global market.  The awareness and demand for Tradition Chinese Medicine strengthened under the gradual liberation of world trade with China.  The herbs required in the medicine potions can be found throughout the world, but they are still popularly imported from China.  To consolidate the global market demand and guarantee the best quality possible, the Chinese government has implemented measures of quality control to assure the safe consumption and value for Traditional Chinese Medicine. 

            Traditional Chinese Medicine is known for its distinctive approach to cure the ailments of the internal body.  Herbal medication is an effective art of healing that has little if any side effects.  Chinese civilization has long viewed sickness as an internal imbalance in its energy derivatives from ingestion of external food sources.  To treat this sort of disorder, one would only need to ingest another food source with the opposite type of energy to recover the balance.  There are no two illnesses of exact cultivations within two different body systems.  Everyone is sick for a different reason and maltreatment of their bodies.  The decay of trade barriers and isolation of Chinese markets have led to myriad opportunities and development to the industry of Chinese herbal medicines. 

            The People’s Republic of China has formed a system for Chinese herbal medicines that is accountable for its production and circulation.  The production of Chinese medicinal materials is the base of the system, Chinese herbal medicament industry is the main body, and the Chinese herbal medicament commerce serves as the link for the three.  China is richly endowed with more than the 5,000 determinable medicinal herbs as their pool of medicinal resources.  For the production of Chinese medicinal materials, the government and business stakeholders made available more than over 600 bases across the country.  China has a domestic output of about 400,000 tons of Chinese medicinal, produced every year on approximately 5 million mu of land.  Chinese herbal materials are processed from over 1,500 plants produce.  China claimed more than 4,000 Chinese patent herbal medicines in over 40 drug forms in its 684 pharmaceutical factories for herbal medicaments within its soils.  In 1995, there were more than 30,000 wholesale and retail shops for herbal medicines in China.  Chinese herbal medicines are desired whenever proven effective and made possible.  It is a preferred medication.  Across international borders, citizens around the world regardless of ethnic descent increasingly demand Chinese herbal medicines.[1]

Regulation and documentation procedures in China have been adapting to reflect the needs of modernity.  The State Administration of Chinese Traditional Medicine, Ministry of Foreign Trade and Economic Cooperation, State Administration of Import and Export Commodity Inspection and Customs General Administration have collaboratively created and placed into effect the quality registration, inspection and releasing system of traditional Chinese medicines to be exported.[2]  Effective ever since May 1, 1996, the State Administration of Chinese Traditional Medicines (SACTM) would delegate inspection responsibilities to regional quality inspection organizations.[3]  All herbs and its extraction derivatives to be exported, along with their manufacturing enterprises, are to undergo strict inspection before attaining qualification and deport from the borders of China.  Quality registration certificates will be verified and issued to those who meet all the necessary requirements by the State of Administration of Chinese Traditional Medicines.[4] 

The foreign corporation that imports must file an application for the proper Chinese authorities to insure the quality of the Chinese traditional medicines.  In their application, copies of the supply contracts of the production enterprises and the quality registration certificates of Chinese traditional medicines must be submitted.[5]  The commodity inspection authorities must verify Chinese herbal medicines that are to be exported.  A commodity inspection certificate will be issued to prove compliance with the Chinese traditional medicines if all requirements are fulfilled.  In accordance to the relevant provision, the production enterprises will also be published.[6] 

The name list of Chinese traditional medicines to be exported accompanied by their production enterprises, which are approved for quality registration and inspection, is published once a year.  The State Administration of Chinese Traditional Medicine, Ministry of Foreign Trade and Economic Cooperation and State Administration of Import and Export Commodity Inspection makes available the publication annually.  Included in the contents of this publication are the names of production enterprises, varieties of Chinese traditional medicines, specifications, trademarks, quality registration and testing organizations.[7]  Foreign corporations that have business ventures and trades with Chinese traditional medicines must be transacted with those production enterprises, which manufactured the exports with approval for quality registration. 

The State Administration of Traditional Chinese Medicine (SATCM) is the hegemony in decisive matters regarding Traditional Chinese Medicine.  Besides the tedious labor of working out department rules and regulations and supervising their administration, the State Administration of Traditional Chinese Medicine formulates the guidelines, policies, laws and regulations for Traditional Chinese Medicine.  At times of disaster, pestilence, and military requirements, the State Administration of Traditional Chinese Medicine is able allocate emergency funds and loans.  The organization guides the therapy, nursing, rehabilitation and health care of Traditional Chinese Medicine.  It is also responsible for the integration of Traditional Chinese Medicine and Western medicine and nationality medicine.  The production and trade of all Chinese medicines are under the supervision of the State Administration of Traditional Chinese Medicine.  In a perpetual strategy to intellectually enhance and delegate the knowledge of all Traditional Chinese Medicines, the organization organizes personnel training, scientific research, technology development, and protection of intellectual property rights.  To foster a globally synergistic relationship, the development of international scientific exchange and cooperation receives substantial attention.  The State Administration of Traditional Chinese Medicine is also responsible for the creation of export and import plans of Chinese herbal medicines.[8]

The exponential gain in popularity of Traditional Chinese Medicine is due to word of mouth recommendations by friends and relatives.  The benefits and effects are promoted in the most personal and convincing medium.  Chinese herbal medicines are made available to the public in a wide range of prices.  There are some potions that are expensive, but most can even be found below the price of over the counter drugs, which can validate that Chinese traditional medicines are relatively more affordable.  Consumers of various social statuses can be served and have their needs satisfied.  Traditional Chinese Medicines can be a cheater alternative to the rising price of modern medicine.[9] 

Traditional Chinese Medicine is an emerging global industry.  As an alternative medication that is preferred, it is by no means without the need for regulation, corporate accountability, and responsible management.  The effectiveness of these potent remedies is derived from the essence of the herbs.  Fake herbs and counterfeit extraction medication is a prosperous plague that have caused the death and illness of numerous consumers.  The practitioners and manufacturers of Chinese herbal medicines must receive qualifications against international standardizations.  As in China with its awakening to health security of the present market, the world can only benefit from growing importance and administration of natural medication.

Sources Cited:

1)      http://www.jus.uio.no/lm/china.traditional.medicine.circular.1996/doc

2)      http://www.satcm.gov.cn/english_satcm/zhongyao.htm

3)      http://articles.ibonweb.com/magarticle.asp?num=388

4)      http://www.taotoearth.com/links_laws_asia.html