China's government has released a five-year plan to drive the growth of its medical and pharmaceutical industry from 2026 to 2030. The plan, jointly issued by 10 government agencies, identifies innovation as the primary driver for the industry's transformation. It aims for China's biomedical research and applications to be at the forefront globally by 2030, with significant breakthroughs in key technologies.
The plan sets specific targets for innovation, including having over 25% of the global market share for first-in-class drugs, being among the world's top in terms of new drug research lines and innovative drugs entering the market, and having over 200 innovative medical devices launched. It also targets an annual growth rate of over 20% for the innovative pharmaceutical industry and having more than five innovative drugs with annual global sales exceeding $1 billion.
To achieve these goals, the plan requires listed pharmaceutical companies to spend at least 10% of their annual revenue on research and development. It prioritizes the development of first-in-class and best-in-class drugs, as well as advanced medical devices, with a focus on four areas: chemical drugs, traditional Chinese medicine, biological products, and medical devices. For chemical drugs, the focus is on new targets, mechanisms, and patterns, as well as innovative delivery systems.
The plan also emphasizes the importance of advanced technologies, including artificial intelligence, gene editing, and cell and gene therapy. It outlines three main stages for technological development: basic research, technology conversion, and industry maturation. Dozens of key technologies have been systematically published, covering areas such as AI-assisted drug design and gene editing.
China's medical innovation sector has shown rapid progress, with 59 innovative drugs and 51 innovative medical devices approved for the domestic market this year. The plan encourages companies to participate in international cooperation, including research and development, production, and marketing. It also aims to improve the global competitiveness of China's pharmaceutical industry and enhance intellectual property protection.
The National Medical Products Administration of China reported that Chinese innovative drugs have gained wider recognition globally, with the total value of external licensing deals exceeding $120 billion this year, up 36% year-on-year. The administration attributed the growth to increased cooperation between China and other countries, including Arab nations, in the field of pharmaceutical innovation.
The cooperation between China and Arab countries in pharmaceutical innovation has expanded beyond traditional trade, moving towards joint research and development, technology licensing, and local production. The Chinese-Arab Center for Scientific and Technological Cooperation in Public Health was launched in Hangzhou in July 2025 to promote collaborative research and strategies for addressing common diseases.
Key points
- China's five-year plan aims to make the country's biomedical research and applications a global leader by 2030.
- The plan targets significant growth in the innovative pharmaceutical industry, with an annual growth rate of over 20%.
- China is promoting international cooperation in pharmaceutical innovation, with a focus on joint research and development, technology licensing, and local production.
