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Traditional Chinese
Medicine (TCM)
needs to prove its worth through rigorous clinical trials, according to the head of one of China's
largest herbal remedy companies, as a contentious new law to boost the $40bn sector comes into
effect.
Traditional Chinese
Medicine is estimated by analysts to account for a third of sales in China's $117bn pharmaceutical (药学) market, the world's second largest. But
most of those sales are of relatively
cheap over-the-counter drugs, with many Chinese hospital doctors unwilling to
prescribe TCM
remedies because of the lack of evidence for their effectiveness.
China's first law
promising equal status for TCM and western medicine in the country's state-dominated healthcare system comes into
effect this weekend. Provisions include encouragement for hospitals to set up TCM centres,
and a licensing system for practitioners (从业者). "This law is very important for securing the status
of TCM," said Wu Yiling,
chairman of Yiling Pharmaceutical, a company that makes herbal remedies
based on traditional recipes in the northern province of Hebei.
Listed in Shenzhen,
Wu Yiling has a market capitalization of RMB 20.7bn ($3bn). Mr Wu, the son of a herbal
practitioner, controls a family fortune of $1.6bn, according to the Hurun Rich List.
Mr Wu is both a
supporter of the nature of Qi—the
mystical energy force that provides the basis for much of TCM theory—and the clinical trials vital to
western pharmaceutical companies. "TCM needs to develop using modern research methods," he said.
For instance,
researchers from Peking and Cardiff
Universities tested the health benefits of Yiling's herbal medicine Yangzheng
Xiaoji, publishing papers in the International
Journal of Oncology
that showed the drug can slow the growth of cancer tumours. "The theory
and recipe is TCM,
but in practice the evaluation of our medicines is carried out according to
western evidence-based methods,"
Mr Wu said.
Analysts say such
tests can help gain support from doubtful hospital doctors and boost prescriptions. "Doctors need
strong evidence that drugs definitely work," said Serena Shao, healthcare analyst at brokerage CLSA. "Some
of these companies are currently doing clinical trials, and getting proof that their drugs have
the same efficacy (功效) as chemical drugs. That's the way to go." she added.
The TCM law has
been greeted with doubt from China's western-schooled medical establishment, which points to a lack
of rigorous training for TCM doctors, and a recent series of shocking events involving herbal
injections believed to have been harmful. "Officials will try
and encourage
TCM, but also will be very cautious about what kinds of TCM they use in
hospitals," added
Ms Shao.