Thanks to the agreement of China-ASEAN free trade in 2010, the tax on health products and medicine trade among China and ASEAN countries decreased to a great extent.
The TCM trade among China and ASEAN countries in the first half of this year saw year-on-year increase of 41.46 percent to $267 million. The value of export from China reached $211 million, increased by 41.46 percent compared to last year. The import reached $56 million, increased by 83.24 percent.
The trade of Chinese herbal medicines and extracts always account for more than 80 percent of the total TCM trade. The export from China has been developing very stable at an 11 percent growth in the past few years.
In the first half of this year, the TCM export to Vietnam and Malaysia accounts for 57 percent of the total TCM export from China to ASEAN market. Only Singapore saw a drop regarding TCM export from China.
The major provinces in China that exported to ASEAN countries are Guangxi, Sichuan, Fujian, Yunnan and Jiangxi. Jiangxi saw the biggest growth rate in this regard, while Guangdong saw the biggest drop. In the first half of this year, 603 TCM local companies exported to ASEAN market.
State-owned companies used to be the major group in TCM exporting to ASEAN market. In 2011, the export value of SOE accounted for over 50 percent in the total amount. In the first half of this year r year, the export value of private enterprises reached over $98 million, increased by 60.25 percent compared to last year. This makes the private enterprises as the major group in TCM exporting to ASEAN countries.
For more on China-related business, visit U.S.-China Health Products Association.