A recently published paper delivers a finding that should be well known to every executive in Western pharma: China has gone from accounting for less than 8% of global clinical trials in 2010 to surpassing the United States in annual registered trial volume by 2020, reaching more than 5,000 trials per year in 2024. Eighty-eight percent of that growth, among private-sector sponsors, was driven by domestic Chinese firms, not multinationals relocating R&D.
China is not just a manufacturing base for the West’s drug supply chain. It is now a peer competitor in drug innovation — and it intends to stay that way on its own terms.
Toward that end, on April 7, China’s State Council issued Decree No. 834, the Regulations on Industrial and Supply Chain Security, effective immediately, with no transition period. Its 18 articles give Beijing sweeping new powers to investigate and sanction any foreign company whose commercial decisions are deemed to harm China’s industrial chain security. China’s 15th five-year plan has explicitly designated biotechnology and pharmaceuticals as the centerpiece of its next phase of industrial development. Decree No. 834 is the legal infrastructure through which Beijing intends to protect and leverage that ambition.
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