Pharmaceutical Companies Invest Heavily in China

Pharmaceutical companies are investing in China in a move to gain entry into its market which is projected to surpass US$25 billion by 2010.

Besides the cost-saving factor, the Chinese pharmaceutical market provides a communication link between pharmaceutical companies and China's business and government contacts. In addition, there is a large talent pool of scientists, chemists and engineers who can perform research at about one-tenth of the cost in the U.S.

The Chinese government is playing a proactive role by encouraging and luring the pharmaceutical companies with incentives in the form of tax breaks and stricter rules such as intellectual property (IP) protection that will in turn protect investors.