Beijing’s move to simplify the process for approving oral proprietary Chinese medicine (PCM) from Hong Kong to be sold across the border has created new opportunities for firms in the city to exploit the mainland’s 450 billion yuan (US$62.8 billion) market, according to Hong Kong’s trade promotion body.
The streamlined procedures have opened a more convenient channel for Hong Kong companies to expand into the mainland, the Hong Kong Trade Development Council said in a report published on Thursday.
“We understand that some companies are making preparations to take advantage of the new rules,” said Wing Chu, principal economist and head of Greater China research at the council. “But we are talking about pharmaceuticals, so there are still hurdles to clear and approvals do not happen overnight.”
Since late April, oral PCM products that have been sold in Hong Kong for more than 15 years, and whose production processes complied with “good manufacturing practices”, were eligible for the simplified approval process.
PCM refers to traditional Chinese medicines in tablet or capsule form that are made from herbs, animal parts or minerals.
The city exported HK$2.88 billion (US$367 million) worth of PCM products last year, 93 per cent of which were locally produced. Over 70 per cent of those exports went to mainland China.
Before the simplified rules were implemented, the process for Hong Kong firms entering the mainland market was not straightforward due to different technical standards.
