Contents:

I. INTRODUCTION Report Scope and Methodology Executive Summary II. BUSINESS ENVIRONMENT Economic Outlook Key Economic Indicators Industrial Output Population and Labor Foreign Investment Foreign Trade Financial and Tax Regulations Banking System and Regulations Foreign Exchange Taxes, Tariff and Custom Duties III. OTC DRUGS INDUSTRY ASSESSMENTS OTC Drugs Industry Structure Market Size Market Growth Drivers OTC Drugs Industry Capacity Major Producer Facility Locations, Output and Capacity Market Share of Key Producers Labor Cost Potential Entrants Major Distributors Major Foreign Investments Technology Development IV. OTC DRUGS PRODUCTION AND DEMAND Overview Demand of OTC Drugs by Region in 2004 Over-the-Counter (OTC) Drugs Production and Demand Cold Medicine Major Manufacturers Supply and Demand Cough Medicine Major Manufacturers Supply and Demand Pain Control Drugs Major Manufacturers Supply and Demand Skin Preparations Major Manufacturers Supply and Demand Vitamins and Supplements Major Manufacturers Supply and Demand Digestives Major Manufacturers Supply and Demand Antiseptics and Antibacterials Major Manufacturers Supply and Demand Ophthalmic Preparations Major Manufacturers Supply and Demand Other OTC Drugs OTC Drugs Imports and Exports Pricing Trends V. OTC DRUGS MARKET OUTLOOK OTC Drugs Markets Outlook Overview Government Regulations Health Care Insurance Industry Overview Consumer Spending Trends Demographic Trends Health Care Industry Trends Hospitals and Hospital Beds Physicians and Physician Visits VI. MARKETING STRATEGIES Distribution System in China China's Distribution System OTC Drugs Distribution Channels Transportation and Freight Infrastructure Communications Market Entry Channels Exporting to China Export Market Overview Chinese Trading Practice Chemical Trade Companies Import Restrictions in China Technology Licensing Technology Licensing Overview Intellectual Property Protection Joint Venture Joint Venture Overview Advantages and Disadvantages Wholly Owned Enterprises Foreign Wholly Owned Enterprises Overview Advantages and Disadvantages Other Market Entry Channels Setting up Sales Offices Selling to China through Attending Trade Fairs Contacting Chinese Companies Advertising Market Entry Strategies Understanding Differences Business Practice Differences Knowledge of Regulations and Restrictions Dealing with Governments VII. OTC DRUGS PRODUCER DIRECTORY OTC Drugs Producer Profiles Distributors and Trading Companies Research Institutions and Associations LIST OF TABLES I. INTRODUCTION Economic Outlook Summary OTC Drugs Supply and Demand Summary II. BUSINESS ENVIRONMENT Key Economic Indicators Industrial Output Population and Labor Force Trends Foreign Investment and Loans Foreign Trade Key Commodity Exports from China China’s Exports to its Leading Trade Partners Key Commodity Imports into China China’s Imports from Its Leading Trade Partners III. OTC DRUGS INDUSTRY ASSESSMENTS OTC Drugs Industry Capacity Major Producer Facility Locations Major OTC Drugs Producer Output and Capacities Market Share of Key Producers Major Foreign Investments IV. OTC DRUGS PRODUCTION AND DEMAND Total OTC Drugs Production and Demand Demand of OTC Drugs by Region in 2004 OTC Drugs Production and Demand Cold Medicine Major Manufacturers Supply and Demand Cough Medicine Major Manufacturers Supply and Demand Pain Control Drugs Major Manufacturers Supply and Demand Skin Preparations Major Manufacturers Supply and Demand Vitamins and Supplements Major Manufacturers Supply and Demand Digestives Major Manufacturers Supply and Demand Antiseptics and Antibacterial Major Manufacturers Supply and Demand Ophthalmic Preparations Major Manufacturers Supply and Demand Other OTC Drugs OTC Drugs Imports and Exports V. OTC DRUGS MARKET OUTLOOK OTC Drugs Production and Demand Consumer Spending Trends Demographic Trends Health Care Industry Trends Hospitals and Hospital Beds Physicians and Physician Visits LIST OF CHARTS OTC Drugs Production and Demand Summary China's GDP and Industrial Output Industrial Output by Ownership Foreign Investments and Loans China’s Imports and Exports OTC Drugs Capacity in China OTC Drugs Capacity, Output and Demand OTC Drugs Production OTC Drugs Exports and Imports OTC Drugs Demand by Market in 2009

Summary:

China has experienced over two decades of high economic growth, which has been stimulated by the consecutive increases of industrial output, consumer consumption and capital investment. China’s GDP has been growing at 9.8% per annum. National industry output has been advancing at 15% annually and will continue to sustain a strong growth into the next decade. The fast-growing middle class is creating an enormous consumer society. As the fastest-growing economy in the world, the emerging market has attracted the attention of investors and corporations around the world for the last two decades. To deepen the reform of state-owned enterprises is a long-term task and needs great efforts. The reform of state-owned economy has witnessed rapid changes in both economic and social aspects. The introduction of foreign advanced technology and capitals will continue to be favored by the Chinese government and business community. New ways will be adopted to utilize foreign investment, including mergers, acquisition, and investment funds and securities investment. China will continue to improve its investment environment in the areas of legal system, intellectual property protection, foreign trade and investment regulation, infrastructure and financial system. China is the second largest foreign investment recipient after the United States in the world today. Given its vast market, the country provides tremendous opportunities for investment and trade both for the present and future. Report Scope and Methodology This report examines China's macroeconomic trends, investment environment, OTC drugs industry structure and capacity, production and demand, end-use market consumption trends, distribution channels and principal industry participants. Long-term forecast for major OTC drugs production and demand are included. Key producers are profiled. Top Chinese OTC drugs producers are listed in the producer directory section. Most primary and secondary research was done in China in order to access up-to-date government regulations, market information and industry data. Data was collected from the Chinese government publications, Chinese language newspapers and magazines, Chinese chemical industry associations including Chinese OTC drugs industry associations, local governments' chemical industry bureaus, OTC drugs industry publications, and our in-house databases. Interviews were conducted with Chinese industry experts, university professors, and OTC drugs producers in China. Historical data includes 1994, 1999 and 2004. Long-term development trends are projected to the years 2009 and 2014. Economic models and quantitative methods are applied in this report to project market demand and industry trends. The metric system is used and values are presented in either yuan (RMB, current price) and/or US dollars. The exchange rate for 2004 is based on the annual average rate (8.3 yuan per US dollar). The word "demand" is used interchangeably with "consumption". Totals may not add due to rounding.