Bulk drug trade friction between Indian and China is difficult to cut off in short term

In January, Bureau of Indian anti-dumping make the final ruling, affirmed that China and Mexico, the price of bulk drug production is lower than the normal value, causing substantial damage to domestic industry in India and constitute dumping. According to the Indian Commerce and Industry under the Tax Administration of anti-dumping and previous joint proposal will be made per billion units of penicillin G potassium in the anti-dumping duties $ 2.17 per kilogram for Chinese-made 6-APA 2.66 ~ $ 9.28 levy anti-dumping duty.India and China's raw material drugs trade is an interdependent relationship, in fact, they can not live without each other, anti-dumping duties on India itself is very negative. As the local climate and geographical features of India, resveratrol penicillin industrial salt products can not rely on domestic solutions, has been imported from China and Mexico, and for imported products to determine if anti-dumping duties, it will eventually lead to price increases the cost borne by the buyer's market in India. Notice in the final ruling, the anti-dumping Authority will continue to China as a non-market economy."Some anti-dumping investigation cases although the amount of out great, but many of them are multinational companies of their own behavior, as long as China and India, the status of API power remains unchanged, similar events will definitely happen one after another." There are industry researchers believe that competition penicillin industrial salt low-end products has been gradually from upstream to downstream intermediates, bulk drugs and even the spread of high-end, and frequently lead to international trade friction, some of which low-cost bulk drugs industry competition, it attracted one of the anti-dumping of the important reasons. India has been the Chinese penicillin industrial salt and 6-APA's major exporting countries, since 2005, China's exports to India of penicillin industrial salt has remained at more than 5,000 tons per year, more than the Chinese penicillin industrial salt for 80% of total exports. Beginning in 2006, the Indian industry on Chinese imports of penicillin penicillin industrial salt products focused their attention on the implementation of the policy, Plant extracts repeatedly filed anti-dumping proceedings, and then withdrawal. From a single penicillin industrial salt products to the entire product chain, extending continuously to the downstream products, indicating that the Indian policy of penicillin industrial salt industry for the determination of trade protection has not been reduced. In early March this year, Health Insurance Association of penicillin industrial salt organized anti-dumping response meeting, the representative said many manufacturers, in the case of exports to non-profit, may give up direct exports to self-digestion, or an extension to the downstream products. Although the local production of bulk drugs in India can solve 70% of their needs, but in the long run, India's demand for China's API is rigid, China's export of bulk drugs in India will continue to grow. China and India in the bulk drug industry, there is a certain complementarity, penicillin industrial salt market in India has a monopoly and price advantage; the same time, the export of bulk drugs in varieties, have a larger cross between the two countries, mutual high degree of dependence between.In fact, India has become China's export of bulk drugs and intermediates of the best target market. Some experts predict that as more patents expire, generic drug industry will further stimulate an increase in the size of bulk drug demand, the global bulk drug market from 2010 to 868 billion dollars in 2015 to $ 108.9 billion. As a generic power of India, its reputation is also on the global outsourcing market, pharmaceutical raw materials the demand for bulk drugs are rising. 40% of the global API market demand from India, while the Indian market more than 400 kinds of bulk drugs and 57,000 kinds of finished products. Earlier, Indian imports from China penicillin industrial salt and 6-APA is mainly for deep processing of amoxicillin, and then exported to Europe and other markets. The anti-dumping tax, the real for India's own chain of penicillin industrial salt will fluctuate, and amoxicillin directly affect the export situation. Although the Indian Ministry of Finance rejected two anti-dumping applications, but does not mean that the future of the industry chain, the fundamental problem has been resolved, you need to alert the industry to prepare, prevent such trade protection measures and start over.