Chinese market growth

China accounts for thirteen percent of the world chemical market, with sales of EUR 141 billion. Consumption is expected to grow at between eight and nine percent per annum over the next ten years - already substantially lower than in the relatively recent past (Fig. 32.1). Consumption growth is driven mainly by textile and clothing end-user industries, followed by automotive, electronic goods, and industrial machinery. By 2015, the Chinese market will have a volume of more than EUR 370 billion and account for more than a fifth of the world s market share. In other words, it will be on a par with the US or Western European markets. 

Most of this growth has concerned the growth of China and suppliers of commodity resins and chemical intermediates to the rapidly growing Chinese market. 

The massive expansion of the Chinese economy has had a profound impact on the production and use of commodity plastics in China. The first is the considerable growth in demand for polymer products which have outstripped local supply and as a consequence China is a major importer. This has had the effect of promoting large export oriented plants in other Asian countries, with large parts of their product slate destined for the Chinese market. China is now second to Japan in the amount of ethylene produced in the Far East. The Chinese nameplate capacity is almost 7 million tonnes/year. 

The top line in Table 7.1 is the sales figure, and revenue enhancement can be an important globalization goal within an industry. An example, at the time of this writing, is the Chinese market for automobiles, which has drawn many competitors because of high growth. If this is the case, producers must be ready to pitch their products across many boundaries. 

The market entry challenge. Despite the fantastic growth and opportunities, access to and positioning in the Chinese market is very difficult. The buyer s markets, the China Price, the preference for local suppliers, guanxi, all make it a tough place to carve out market share. 

Chalcones are one of the classes of flavonoids well known for their antiplasmodial properties. Licochalcone A (65), isolated from Chinese licorice roots, was shown to display strong in vitro activity against both chloroquine-susceptible (3D7) and chloroquine-resistant (Dd2) P. falciparum strains it also displayed a strong in vivo acitivity in mice infected with P. yoelii, when administered intraperitoneally or orally for 3 to 6 days. The compound appeared to inhibit the growth of the parasites at all stages (rings, trophozoites, and schizonts). Although licochalcone and some derivatives interred the clinical trials as anti-malarials, none of them have ever made it to the market due to severe toxicity observed in phase II clinical trials. 

According to a review by Walsh [10], of 165 biopharmaceuhcal products approved in the United States and Europe by 2006, only two are nucleic acid-based drugs, whereas nine of the 31 therapeutic proteins approved since 2003 are produced in E, coli, and 17 are produced by mammalian cell lines. In 2004 market distribution and manufacture of therapeutic proteins, non-glycosylated (non-antibody) proteins constitutes 40% of the total market, with 12% armual growth rate, and are produced in E. coli or the yeast Saccharomyces cerevisiae glycoproteins (primarily mAbs) constitute 60% of the total market, with 26% armual growth rate, and are produced by mammalian cell culture (mostly with cells from Chinese Hamster Ovary, or CHO). 

China, a market with strong growth potential for the automotive industry, is also beginning to look at hybrid technology. Nevertheless, production at Volkswagen s Chinese venture will not begin until 2008, while large-scale production is not slated to start until 2010.30... 

The pharmaceutical and medical market of China is growing very quickly. The size of China s pharmaceutical market in 1992 excluding bulk drugs and traditional Chinese medicines, was 19.3 billion and 3.5 billion at the official 1992 exchange rate. This reflects overall growth of 92 and 30%, respectively, compared to five years previously. The pharmaceutical market grew by 30% in 1993-1994 to 10 billion. 

Any mammahan ceU line has the basic machinery to express and secrete recombinant protein, and huge numbers of ceU fines with suitable growth properties are available from various tissues and species. The smaU number of cell fines industrially used for manufacturing is, therefore, surprising. Two hamster cell fines, the Chinese hamster ovary cell fine (CHO) and the baby hamster kidney cell fine (BHK), and two geneticaUy related mouse cell fines, the myeloma NSO derived from BALB/c mice, and the hybridoma SP2-0, a fusion of the myeloma with B cells from the same mouse strain, supply most of the mammalian ceU-based biopharmaceuticals, whether marketed or still under development Once commonly accepted as producers, a large body of information about... 

With populations and markets as large as these, India and China cannot be ignored by pharmaceutical companies. In China, home of well-regarded traditional medicines. Western medicines now outsell traditional remedies three- to four-fold. The Chinese growth in Western pharmaceutical sales is the fastest in the world (estimated at 15% annually or US 24 billion) and is predicted to rank fifth in 2010. India s pharmaceutical market is estimated at US 5 billion, with more than US 1.2 billion exported as APIs, representing more than 60% of the total API output. 

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