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2019 4th International Conference on Education and Social Development (ICESD 2019) ISBN: 978-1-60595-621-3

Present Situation and Development Suggestions of Traditional Chinese Medicine Industry in Province Na LI1,a and Ni YAN2,a,* 1,2School of Management, of Chinese Medicine, , Hubei, [email protected] *Corresponding author

Keywords: Hubei Province, Traditional Chinese Medicine Industry, Present Situation, Suggestion.

Abstract. The development of traditional Chinese medicine industry is facing new patterns and problems with the strategic goal of building a strong province of traditional Chinese medicine in Hubei Province put forward. This paper puts forward some suggestions to promote its development based on the present situation of Hubei Province's traditional Chinese medicine industry.

Introduction Located in central China and the middle reaches of the River, Hubei province has various topographical features and unique climatic characteristics, breeds abundant and varied plant and animal resources, forms four main producing areas of medicinal materials including , -Bashan Mountains, and Mufu Mountains, is known as the "Chinese Medicine Storehouse". There are 3,974 species of Chinese herbal medicine resources, which are in the forefront of the whole country. As a province with two famous historical and cultural brands of traditional Chinese medicine, Shennong and Li Shizhen, the traditional Chinese medicine industry in Hubei Province should seize the opportunity and seek for development under the new historical situation that the country pays more and more attention to the development of traditional Chinese medicine industry.

Analysis of Present Situation of Traditional Chinese Medicine Industry in Hubei Province Achievements of Chinese Medicine Industry The traditional Chinese medicine industry mainly includes three kinds of enterprises: the production enterprises of traditional Chinese medicinal slices, the production enterprises of traditional Chinese proprietary medicine and the production enterprises of traditional Chinese medicine health care products. Traditional Chinese medicine industry in Hubei Province has basically formed the business pattern of pharmaceutical and chemical industry, proprietary Chinese medicine preparation, slice processing, medicine and health care, production and marketing of medicinal materials. Development Scale of Traditional Chinese Medicine Industry is Growing. Proprietary Chinese medicine industry, traditional Chinese medicine slices industry and biological and biochemical products industry have been developing and growing, and have a certain position and influence in the market. According to statistics, there are 246 enterprises which produce and have traditional Chinese medicinal slices in Hubei Province, 336 enterprises which produce and have traditional Chinese proprietary medicine in Hubei Province, 924 enterprises which produce and have traditional Chinese medicine health care products. In Hubei Province, and 2443 approval numb of traditional Chinese medicine in Hubei Province. All kinds of enterprises show an increasing trend year by year. At present, Hubei province has 50 demonstration enterprises and bases of modern science and technology of traditional Chinese medicine at the provincial level, 39.34 billion RMB output value of traditional Chinese medicine industry, accounting for 33% of the province's pharmaceutical

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industry. Six enterprises have entered the top 100 pharmaceutical enterprises in the country and possessed famous Chinese trademarks such as "Jianmin", "Longmu", "Mayinglong ", and “Compendium of Materia Medica" and so on. The construction of TCM industrial park promotes the development of TCM industry. Chinese medicine industrial parks have been established in Wuhan Miaoshan, , Enshi, and other places. Taking advantage of the demonstration function of the backbone enterprises in the park, the system reform and assets reorganization of the traditional Chinese medicine enterprises will be promoted, the well-known enterprises will be guided to participate in the development of the traditional Chinese medicine industry, and the development of the traditional Chinese medicine industry will be promoted. China’s Traditional Chinese Medicine (Central China) Industrial Park under construction, relying on the Hubei Province traditional Chinese medicine enterprise Sinopharm Zhonglian, covers the traditional Chinese medicine slices and traditional Chinese medicine formula granule production center, proprietary Chinese medicine production center, the sharing traditional Chinese medicine intelligent distribution center, the traditional Chinese medicine health complex, around Hubei local medicinal materials resources construction GACP planting base and other industry formats. Based on the East Lake High-tech Zone in Hubei Province, its development strategy is to build Sinopharm Zhonglian into a leading enterprise of Chinese herbal medicine industry in Central China. Making Use of Natural and Cultural Resources to Create a Number of Pharmaceutical Brands. Hubei province has both natural and humanistic advantages of traditional Chinese medicine, riches in natural resources and species, with a wide range of distribution integrating both north and south features. Among more than 1,800 kinds of Chinese herbal medicines Recorded in Compendium of Materia Medica, there are more than 400 kinds in Wudang Mountain and more than 1,200 kinds in . Among them, the local medicinal resources are particularly rich. There are more than 60 kinds of commonly used bulk medicinal materials, accounting for 1/5 of the total variety of genuine medicinal materials in China. So far, the province has formed a number of production bases, established a number of authentic medicinal main production areas, enjoying a great advantage in the production of local medicinal materials. Thinking of the humanistic and historical conditions, Hubei province has a long history of traditional Chinese medicine, owned a batch of old Chinese industrial enterprises: such as Ma Yinglong (Ma Yinglong Pharmaceutical Co., LTD) with a history of more than 400 years, Ye Kaitai (Jianmin Pharmaceutical Group Co., LTD) with a history of more than 370 years, Chen Taiyi (Wuhan Zhonglian Pharmaceutical Group Co., LTD) with a history of more than 100 years, Chukaitang (Wuhan Chukaitang Pharmaceutical Co., LTD) with a history of nearly 80 years, and Liu Tianbao (Wuhan Liu Tianbao Pharmaceutical Co., LTD) with a history of nearly 160 years, laid a solid foundation for the development of Hubei's traditional Chinese medicine industry. In recent years, various localities have carried out in-depth excavation and utilization of Li Shizhen's medical culture and Shennong's medical culture. For example, constantly excavates and innovates and establishes a series of enterprises of research and development, production and sales of traditional Chinese medicine relying on Li Shizhen's cultural brand, among which Li Shizhen Pharmaceutical Group has made outstanding achievements. Relying on Shennong Culture, established "Hubei Shennong Materia Medica Traditional Chinese Medicinal Slices Co., LTD", established "Hubei Shennong Pharmaceutical Co., Ltd", providing a good demonstration for brand building. Some Chinese Medicinal Materials Have Been Deeply Exploited and Utilized. At present, a batch of health products, health food and medicines with independent intellectual property rights represented by Artemisia Argyi, Chaenomeles, Coptis Chinensis, Polygonum Cuspidatum, Dioscorea Opposita, Panax Japonicum, Bandang and Ampelopsis Grossedentata had been developed. Huanggang City uses Artemisia Argyi to develop soap, toothpaste, essential oil, mugwort stick, air fresheners and other dozens of series of products. Qichun Li Shizhen Biotechnology Co., LTD registered "Compendium of Materia Medica", "Shengjing" and other products by using Huanggang authentic medicinal materials. Lichuan Xianglian Pharmaceutical Co.

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LTD has developed 28 proprietary Chinese medicine products from local Coptis Chinensis, and its annual growth rate is 20%. Hubei Sanxin Biotechnology Co., LTD, located in Fang County, Shiyan City, has developed a series of traditional Chinese medicine Polygonum Cuspidatum, including "yellow bud stem" vegetables, resveratrol extract, emodin extract, and crude Polygonum cuspidatum extract and so on. Inspired by the policy of traditional Chinese medicine industry and the role of traditional Chinese medicine health care products, some medium-sized and large enterprises mainly engaged in the production and sales of chemical drugs have gradually set foot in the production of proprietary Chinese medicines, Chinese herbal medicines, and traditional Chinese medicine health care products. The production of artificially propagated Cordyceps sinensis carried out by East Sunshine Pharmaceutical Co., LTD realized a profit of over 500 million RMB for a single variety of cordyceps sinensis. The proportion of Chinese patent medicine and national medicine in Renfu Pharmaceutical Group Co., LTD is increasing. Some pharmaceutical companies began to establish their own Chinese herbal medicine planting base. Hubei Furen Pharmaceutical Co., LTD, Jiuzhou Tong Pharmaceutical Group Co., LTD and Wuhan Jianmin Pharmaceutical Group Co., LTD have planting bases in the province, which can improve the quality of proprietary Chinese medicine and promote the development of local traditional Chinese medicine planting industry and the primary processing of traditional Chinese medicine. Development Problem of Traditional Chinese Medicine Industry Poor Overall Innovation Capability and Insufficient Stamina for Industrial Development. Although Hubei Province is a big province of traditional Chinese medicine, it is not yet a strong province of traditional Chinese medicine. At present, the research and development of new drugs is slow, and the number of new products of famous and high-quality traditional Chinese medicine is less. The number of new drugs declared in 2015 and 2016 is zero. The market share of traditional Chinese medicine products in Hubei Province is still far from that of some leading provinces in China. The key problem is that the means, methods, technology and process of research and development cannot reach the advanced level in China, which is closely related to the low level of basic research. Pharmaceutical enterprises are relatively small in scale and poor in efficiency, and have not yet formed large enterprises with strong competitiveness at home and abroad. Fundamental research and long-term R & D investment conditions are not mature, and they have not become the main body of R & D innovation and investment. The channel of R&D investment is narrow, and the development of preparation technology and new dosage forms is backward. Although there are some universities and research institutes in the province, the industrialization degree of scientific research achievements is low, which makes the economic added value of traditional Chinese medicine low and the profitability of traditional Chinese medicine industry poor. Resources integration degree of traditional Chinese medicine industry is not high. So far, there is no a large-scale traditional Chinese medicine industry enterprise in Hubei Province to carry forward the unique natural resources and long-standing cultural heritage of traditional Chinese medicine in Hubei Province. Although there are some well-known Chinese medicine pharmaceutical enterprises in China, but in recent years the development momentum is not big, the expansion of enterprises is slow, products repeat aging. There is still a lack of real meaning of the "leading" enterprise in the Chinese medicine pharmaceutical enterprises. Insufficient Construction of Talent Team and Lack of Interdisciplinary Talents. Although higher education is developing, Hubei Province has many graduates of various academic levels into the pharmaceutical industry every year as a big province of education, but there is still a gap with the development of the traditional Chinese medicine industry. This gap is mainly reflected in the lack of interdisciplinary talents who understand marketing and management and have high-tech expertise. Insufficient Investment and Difficulty in Financing of Traditional Chinese Medicine Enterprises. Most of the traditional Chinese medicine industrial enterprises in Hubei Province are

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small in scale, high in product homogeneity and lack of market competitiveness. Therefore, the enterprise lacks the investment attraction and faces the financing pressure for a long time. Because of the long period of investment return and the great risk of income, it is very difficult for the enterprises of traditional Chinese medicine industry to be favored by the financial institutions, mainly relying on the government to transfer funds and self-financing, still has its obvious limitations.

Suggestions on the Development of Traditional Chinese Medicine Industry in Hubei Province Using Policy Advantage to Promote the Development of Traditional Chinese Medicine Industry The traditional Chinese medicine industry is the engine of the development of the traditional Chinese medicine industry, and also the symbol of evaluating the development of the traditional Chinese medicine industry in different provinces. Powerful traditional Chinese medicine industry can not only promote the development of traditional Chinese medicine agriculture, but also promote the prosperity of traditional Chinese medicine business, so it should be given priority in the development of traditional Chinese medicine. Hubei Provincial Party Committee and the Hubei Provincial Government attach great importance to the development of Chinese medicine, and have successively promulgated the "Decision on Speeding up the Development of Chinese Medicine", "Implementation Opinions on Promoting the Development of Chinese Medicine in an All-round Way" and other policies to fully promote the development of Chinese medicine in the whole province. According to the Opinion, the output value of the Chinese medicine industry will reach over 100 billion RMB in the next five years. Specific tasks and measures have been formulated, including strengthening and optimizing traditional Chinese medicine enterprises and promoting scientific and technological innovation in traditional Chinese medicine to achieve this strategic goal. Under the policy support, Hubei will establish a "Hubei Science and Technology Park of Traditional Chinese Medicine" relying on the Optical Valley Biological City and support the construction of a traditional Chinese medicine industrial park in the main producing areas of traditional Chinese medicines, and build a modern Chinese medicine industrial development gathering area integrating research and development of Chinese medicines, equipment development, entrepreneurship and incubation, talent gathering, health services, and planting and breeding, and be actively preparing to establish the "Hubei Li Shizhen Foundation for the Development of Traditional Chinese Medicine" relying on famous enterprises such as Jianmin Pharmaceutical Industry, Jointown Pharmaceutical Group and Jingpai Group to guide social capital to invest in the development of traditional Chinese medicine. All kinds of enterprises in the traditional Chinese medicine industry should actively make use of the policy support, seize the development opportunity, and promote their own development. Doing a Good Job in Medicine Research and Development by Taking Multiple Measures The government should evaluate the risk of new drug projects as soon as possible to reduce the "Blind Investment" and "Mis-investment" of enterprises, and increase the support for some key projects of research and development of new traditional Chinese medicine. At the same time, encouraging Chinese medicine innovation institutions to transfer new Chinese medicine technology at different stages of research and development is conducive to sharing risks, stimulating innovation enthusiasm, and improving the speed and success rate of new medicine research and development projects. Hospitals and enterprises should speed up the market docking of a batch of mature in-hospital preparations, focusing on the research and development of classic famous parties. At the same time, the research and development of new traditional Chinese medicine should be combined with bioinformatics, big data and other science and technology by taking multiple measures to open the era of "Intelligent Manufacture" of traditional Chinese medicine.

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Upgrade Technology and Improve Processing Level The government should promote the transformation and upgrading of the traditional Chinese medicine industry from the macro-policy, establish and improve the processing technology, technology and processing operation standard of the main medicinal materials in Hubei Province to improve the processing capacity of the traditional Chinese medicine, and carry out research on the key processing technology of the origin of Chinese medicinal materials, optimize and enhance the key extracting and processing technology of the medicinal materials, improve the processing ability and level of the extracts, and increase the added value by taking primary processing, decoction slice processing and extraction processing ability of the origin of Chinese medicinal materials as the core to enhance. Increase Technological Transformation and Make Large Group Strategy Market concentration is related to the technical characteristics of the industry. Pharmaceutical industry is a knowledge-and capital-intensive high-tech industry, and economies of scale play an important role. The qualified production enterprises can be merged and reorganized, and the leading key enterprises can be built to support them to become bigger and stronger. Give greater support to the traditional Chinese medicine industry and give priority to supporting the development of the top 100 enterprises in the industry. Vigorously promote the construction of industrial parks, form strategic alliances based on the parks, and form a new mechanism of cooperation featuring resource sharing, complementary advantages and mutual benefit. Attach Importance to the Construction of Soft Environment and Speed up the Improvement of Innovation System There are many professionals and institutions in Hubei, such as universities and research institutes, which can provide strong technical support for the development of traditional Chinese medicine industry in Hubei province. Cooperate with research institutes and research institutes of higher learning to enhance the mining, sorting, research, evaluation and application of traditional Chinese medicine knowledge and technology. Establish national and provincial TCM engineering (technology) research centers, key laboratories and other research and development platforms to solve common key technical problems such as medicine research and development and industrialization. Use means of production, learning, research and application to promote scientific and technological innovation.

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