Five problems about Chinese exports of bulk drugs

Overall, China's current exports of bulk drugs in the following problems:The first part of the large variety of cyclical excess capacity, price fluctuations. Bulk drugs produced in China are mostly varieties of old, low added value. To 2010, export statistics, for example, exports of goods in the 223 code, the average price of over $ 100 / kg of 27 species, accounting for 12.11%, but exports of the total bulk drug exports accounted for only 5.59%. 47% of the average export price of raw materials, types of drugs at $ 10 / kg. It can be seen that China's API more serious structural defects, the low proportion of high-end API. Number of API manufacturer in the low-end game industry chain, low-level homogenization is serious, the result is a low-price competition intensified. Even more worrying is that some companies quick success, to see what products export prices on the blind horse, or expansion, soon caused a serious oversupply of the market, re-fell into the quagmire of vicious competition. Such as penicillin industrial salt, VC and other species are so large. This cyclical vicious cycle of competition, the formation of a bulk drug industry in China chronic illness, both consume a lot of important resources, but also greatly strength loss of business, a serious obstacle to the healthy development of bulk drugs industry.Second, costs are more difficult to pass on the importer. API China has always been known for cheap, low cost form of the price advantage is the largest international market and the traditional competitive advantage. But this traditional advantage is gradually lost. In 2010, production, operating costs rose more: The first is the improvement of environmental standards, forcing some companies to move out from the developed coastal areas, increasing the cost of replacement business, environmental protection facilities in situ transformation of enterprises, input costs also increased significantly , and the annual maintenance costs but also higher expenses; followed by increased labor costs, the implementation of the new labor contract law, some companies labor costs increased 20% to 30%, while occurrence around the "labor shortage" is added large labor costs for SMEs; third raw material prices, coal, water, oil, electricity, transportation and other costs generally rose, resulting in high production costs, Resveratrol but export prices of many products not only did not sync up, but also an have decreased. Many export enterprises that increase the cost of only 30% to 50% can be shared through communication by the customer, most businesses need to technological innovation, strengthening management and even sacrifice their own profits to absorb a lot of pressure.Third, the prospects are not optimistic about the export tax rebate, reduced competitive advantage. State of the export tax rebate is an important export trade facilitation measures, but with low carbon and environmental protection policy of gradually in-depth, Docetaxel bulk drugs less and less optimistic about the prospects of the export tax rebate. Since many bulk drugs belonging to the "two high" products, the export tax rebate rate from 13% to 5%, a direct impact on export prices of bulk drugs. Although in the context of the international financial crisis, the majority of export tax rebate rate rose to 9%, some of the products back to 11%, but recovery to 13% to 15% of the level is very difficult. Although biomedicine is the country's key development areas, raw material medicine in some of the products is high-tech, high value-added products, but because most of the customs codes are comprehensive API code, so in order to increase the export tax rebate rate for these products is also very difficult. In recent years, some products of export customs classification codes more and more controversial, since different encoding the export tax rebate rate difference of 6 percentage points, the results of different classification of the enterprise also has great influence. Reduction of export tax rebate rate, number of products in the Chinese and Indian companies a competitive disadvantage.Fourth, the trend of appreciation of RMB, operating at higher risk. Pressure of RMB appreciation has been hanging in the export business head of a sword. February 10, rose to 6.5849 against the dollar, foreign exchange reform has been high. Currently, the US-led Western countries have also put pressure on RMB appreciation, Plant extracts the appreciation of the RMB is still a trend. Relative to the foreign trade enterprises profit margin of around 3%, taking into account the financial crisis in most countries since the devaluation of the currency factors, the yuan to appreciate against the enterprise would be devastating. Even the expectations of RMB appreciation will affect the company's signing of the fear of exchange rate changes directly affect the export of bulk drugs trade.Fifth, lack of extension of industrial chain, in competition with India, the gap more apparent. India is China's biggest rival exporter of bulk drugs, generally speaking, China's API exports and some in relatively large species have an advantage in India, but the competition in the downstream product, the Indian was dominant. In 2010, imports of raw materials from China, India drug price more than European and American countries, reflecting the lower reaches of the Indian bulk drugs in the quality of the product or increased brand development efforts, the Indian companies in this gap may be widening. India has had on international degree in business, access to high-end market, quality certification, to develop markets in Europe and America and Africa preparations ahead of the Chinese enterprises, Chinese enterprises pay attention to the development of raw materials such as chain drug industry and high-end market, there is reduced to India API processing business risk. Source:http://www.cospcn.com