On June 21, the China National Medical Products Administration (NMPA) announced on its official website that the “China-India Pharmaceutical Regulatory Exchange Meeting” was held in Shanghai to strengthen communication and cooperation between the pharmaceutical regulatory authorities and pharmaceutical industries of both countries. Earlier in May, industry rumors suggested that Indian generic drug companies were negotiating with the Chinese government to participate in the “4+7” bidding process. Some Indian generic drug manufacturers indicated they could offer prices 20% to 30% lower than the winning bids in the 4+7 program. The recent Sino-Indian exchange also covered topics related to China's drug tendering and procurement system.

This news sent shockwaves through China's pharmaceutical industry, with cries of “the wolves are coming!” echoing across the sector. Already battered by the “4+7” policy, which had driven drug prices to rock bottom, the prospect of Indian drugs undercutting prices by another 20-30% was seen as a death knell for China's domestic pharmaceutical sector.

In reality, India's global pharmaceutical exports reached $19 billion in 2018, including sales to high-end markets like the United States, Japan, and the European Union. However, India's pharmaceutical exports to China amounted to a mere $30 million.

India is a remarkably confident nation. After President Trump embraced Modi, India adopted a tough stance toward China—confronting it at Doklam and refusing to join the Belt and Road Initiative.

During the U.S.-China trade war, India sought to expand its market share in China and reduce its trade deficit with Beijing, targeting agricultural products and pharmaceuticals as key breakthroughs. The Times of India recently reported that India has identified 151 products specifically to replace U.S. exports to China affected by trade friction. When Trump eventually targets India, the confident nation will naturally adopt a tough stance, refusing to tolerate any provocation and retaliating immediately. Yet this will inevitably impact its domestic economy. Hence, there remains another path: urgently seeking China. This is why the Sino-Indian Pharmaceutical Regulatory Exchange Meeting was convened.

India is in a hurry. We can now selectively choose: those that are urgent and high-priced should lower their prices first to replace others. Hmm, technology should also be brought in. So, volume-wise, please continue to refer to 2018. Is this strangulation? No, it's a gift.