Qizheng Tibetan Medicine: A Guide for the Development of Ethnic Pharmaceutical Enterprises

　　Qizheng Tibetan Medicine: A Guide for the Development of Ethnic Pharmaceutical Enterprises

　　On November 24, 2014, China’s first National Ethnic Medicine Science and Technology Award was announced in Chongqing. This award is widely regarded as filling a gap—both domestically and internationally—by providing specialized recognition for the field of ethnic medicine. The ethnic medicine enterprises that participated in and won this award view it as an annual milestone in the industry. Once again, ethnic medicine has attracted nationwide policy attention, marking another step forward in its research and development as well as industrial growth.

　　In the broad field of traditional Chinese medicine and its related disciplines, Tibetan medicine, Mongolian medicine, Uyghur medicine, and many other ethnic medicines are all “family members.” Most of China’s ethnic medical systems have a long history and their efficacy in treating various illnesses and promoting health has been time-tested. However, these systems have not received sufficient policy attention or achieved an ideal scope of application—this is clearly evident from the development trajectories of ethnic pharmaceutical enterprises.

　　Originating in the Linzhi region of Tibet and now expanding to Beijing and the vast inland markets, Tibet Qizheng Tibetan Medicine Co., Ltd. (hereinafter referred to as Qizheng Tibetan Medicine) can be considered a microcosm of domestic ethnic pharmaceutical companies striving for sustainable development. Founded in 1995, this Tibetan medicine enterprise has spent nearly two decades exploring and developing, and today it has achieved considerable success in the Tibetan medicine industry.

　　The publicly listed company Qizheng Tibetan Medicine has achieved scalable development, yet it has never ceased reflecting on and taking action within its industry. Among the aforementioned prestigious awards, Qizheng Tibetan Medicine was honored with the Science and Technology Progress Award and the First Prize for Innovation in the Ethnic Medicine Industry. In recent years, at the National “Two Sessions” and numerous other public platforms, the company’s Chairwoman, Lei Jufang, has frequently spoken out, calling for greater attention and policy support for ethnic medicines.

　　“We’ve always regarded the Tibetan region as the very source of our bloodline,” summarized Feng Ping, Vice President of Qizheng Tibetan Medicine, at the outset of an exclusive interview with our magazine’s reporter, reflecting on the company’s relationship with the Tibetan region. Feng Ping also serves as the Secretary of the Board of Directors at Qizheng Tibetan Medicine, primarily responsible for maintaining and enhancing the company’s relationships with investors. When it comes to traditional ethnic medicines—especially Tibetan medicine—she speaks with remarkable expertise, her words revealing a deep familiarity that makes her sound more like a medical expert than someone with a background in journalism.

　　After identifying core social responsibility issues—including technological innovation, resource conservation, employee development, and cultural heritage—Qizheng Tibetan Medicine has developed a long-term action plan. However, the sustainable development challenges faced by ethnic pharmaceutical companies are also vividly reflected in this enterprise: for instance, the “one-vote veto” system governing resource cultivation and development, as well as the two-way rotational assignments of employees from different ethnic groups. Some of Qizheng Tibetan Medicine’s explorations could serve as valuable references for enterprises across a wider range of industries.

　　“The deeper the roots, the more lush and flourishing the tree of extraordinary strategies becomes.”

　　WTO Economic Review: As a national pharmaceutical enterprise, how does Qizheng Tibetan Medicine define its social responsibility within its industry? What are the core social responsibility issues that Qizheng Tibetan Medicine focuses on?

　　Feng Ping: The core responsibility of the entire pharmaceutical industry is to relieve consumers of pain and suffering and promote their health. Traditional ethnic medicine is first and foremost a broad category within the pharmaceutical sector—a sub-industry of the pharmaceutical industry itself. Against this broader backdrop, when we consider corporate social responsibility, we focus on key issues that are closely tied to both our own business development and the unique characteristics of the Tibetan medicine industry. The four key areas of Qizheng’s social responsibility—technological innovation, resource conservation, cultural preservation, and talent development—were precisely identified in alignment with these considerations.

　　As the modern inheritor of millennia-old Tibetan medicine, Qizheng Tibetan Medicine believes that the development of Tibetan medicine should not only preserve its unique strengths and advantages but also actively harness modern technology. We are committed to continuously pursuing innovation in areas such as research and development, technology, quality standards, and marketing. While achieving rapid growth ourselves, we aim to be both a leader and a practitioner in the Tibetan medicine industry.

　　At the same time, the true value creation of Qizheng Tibetan Medicine stems from its employees. The development of our employees and the creation of their happy lives are also part of our corporate social responsibility.

　　Most ethnic medicine enterprises operate in the field of natural medicines and, to a large extent, belong to resource-based industries. Therefore, how we can strike a balance between our development and resource utilization—how we can foster industrial growth while simultaneously protecting our resources—has become a crucial issue for our development.

　　Of course, there are still some differences between ethnic medicine companies and other pharmaceutical companies, reflected in the fact that most ethnic medicine companies have distinct cultural characteristics. Therefore, the preservation and inheritance of culture is also an area we pay close attention to.

　　WTO Economic Review: How does Qizheng Tibetan Medicine view its relationship with the development of the Tibetan region? How have the company’s own development achievements benefited local farmers, communities, and industry stakeholders, thereby creating greater shared value?

　　Feng Ping: The Tibetan region boasts an exceptional cultural heritage, rich natural resources, and a fertile talent pool—Qizheng is one of the beneficiaries of this unique environment. We’ve always regarded the Tibetan region as our spiritual and cultural homeland; this is an integral part of our company’s strategy. The roots of Qizheng Tibetan Medicine lie right here in the Tibetan region—and the deeper those roots run, the more lush and thriving the tree will grow.

　　Our relationship with the community is multi-dimensional—whether it’s our economic contributions through tax payments, job creation, talent development, or our support for industries and healthcare, as well as our efforts to enhance the community environment—all of these are considered holistically. First, we’re upgrading the Tibetan medicine industry through both inheritance and innovation, thereby building industrial competitiveness and establishing a solid foothold for the Tibetan medicine sector in China’s vast pharmaceutical market. Second, we’re making significant contributions to the Tibetan region in terms of tax revenue and talent cultivation—for instance, we’ve already achieved a situation where more than 90% of the employees hired for our investment projects in Tibet are local residents.

　　For local farmers, we ensure their income by offering fair market prices and providing them with guidance on Tibetan medicinal herb cultivation techniques. We have also established a Tibetan medicine hospital and a Tibetan medical school in the region, and the positive impact of these initiatives has already extended throughout the entire Tibetan area. Moving forward, we plan to set up 100 clinics across the Tibetan region, thereby promoting the development of grassroots healthcare systems in remote areas and addressing the longstanding challenge of access to medical care faced by residents in the Tibetan region.

　　“We’ve created a map of our own medicinal herb resources.”

　　WTO Economic Digest: Qizheng Tibetan Medicine not only seeks to develop medicinal herb resources and markets but also emphasizes the inheritance of Tibetan medicine culture and the protection of Tibetan medicinal resources. How important are these two aspects in the company’s sustainable development?

　　Feng Ping: Traditional medicine is composed of natural substances and relies heavily on natural resources. In the field of Tibetan medicine, our entire production process is still largely based on purely natural ingredients. Given this current state of use for Tibetan medicinal materials, coupled with the relative fragility of the Qinghai-Tibet Plateau’s resources, it indeed presents us with higher-level challenges in pursuing this industry.

　　Since 1995, Qizheng has been engaged in the production, R&D, and sales of Tibetan medicine in Tibet. From the very beginning of its entry into the Tibetan medicine industry, we have paid close attention to the issue of resource sustainability. Although today the overall scale of Tibetan medicine production is still relatively small, and the Tibetan medicine market is not yet very large—meaning that resource acquisition has not yet reached a fiercely competitive level—we nonetheless believe, from our own perspective, that for this industry to achieve sustainable development, it must address the issue of resource sustainability.

　　WTO Economic Journal: How can companies achieve the integration of traditional Chinese medicine with the modern market?

　　Feng Ping: We’ve been working on resource conservation ever since we entered the Tibetan region. First, we established our own base for the conservation of Tibetan medicinal plant resources. At the same time, we’ve stepped up our efforts in the wild environment to conduct research into key techniques for the sustainable cultivation and management of wild Tibetan medicinal plants.

　　We are also developing a top-level “one-vote veto” mechanism. As long as there’s a bottleneck in resource availability, we won’t consider such products as “major varieties” at the R&D stage. For those varieties that genuinely show strong market potential, the company will step up research into cultivation techniques to prepare for future product development. In the sales phase, we won’t position these products as marketable varieties suitable for large-scale promotion either.

　　In the procurement process, we also exercise control at the source. Qizheng employs various models for herbal medicine procurement. In our collaboration with farmers, on the one hand, our technical staff provide guidance in the fields, promoting scientific harvesting methods—for example, harvesting only the above-ground parts without damaging the roots and rhizomes. On the other hand, we implement a rotational harvesting approach for Tibetan medicines, thereby ensuring that the plants have sufficient time to recover and regenerate.

　　Of course, resource conservation must be forward-looking. At the highest level, we also need to have a thorough understanding of the resources across the entire Tibetan region. Therefore, as a company, we are taking the lead in conducting a comprehensive survey of Tibetan medicinal resources.

　　Thanks to the extensive work done in this area, Qizheng Tibetan Medicine has essentially created its own map of medicinal herb resource reserves. Such surveys can also provide valuable references for the overall development of the Tibetan medicine industry.

　　“It’s about investing in wisdom, and even more so, about a sustainable development strategy.”

　　According to the WTO Economic Review: The stringent controls imposed on the R&D and sales stages—often referred to as “one-vote veto”—may conflict with Qizheng Tibetan Medicine’s aspirations to enhance its brand reputation, seize market opportunities, and reap greater market returns. Has Qizheng Tibetan Medicine conducted the necessary assessments and developed long-term plans to secure overall company recognition and support?

　　Feng Ping: I believe that many companies, in the course of their development, will encounter conflicts between short-term and long-term interests. At Qizheng, I think the root of the issue really lies in our philosophy. Coexisting and thriving together with the environment has already become part of our values, and everyone here deeply agrees with this. For a company, I see this as a form of investment wisdom—and at its core, it’s also a question of sustainable development.

　　Our interactions with Tibet have been long-term, and we place greater emphasis on building a strong reputation within the local community. This prudent approach to resource conservation is the fundamental guarantee of our sustainable development. In fact, we’ve integrated it into our overall sustainability strategy and, at the institutional level, incorporated it into various stages—including R&D and production.

　　WTO Economic Review: Selective harvesting and rotational harvesting methods for Tibetan medicinal herbs still require the endorsement of local farmers, who naturally aspire to reap greater economic benefits. In this process, how can Qizheng Tibetan Medicine effectively disseminate the concept of sustainable Tibetan medicinal herb cultivation to these farmers? Have they encountered any particular difficulties or challenges? Are there any particularly memorable stories worth sharing?

　　Feng Ping: Actually, in Qizheng’s business practices, there aren’t really that many conflicts or contradictions in this regard. Why is that? We provide farmers with guidance on harvesting techniques—for example, we advise them to pinch off the leaves rather than disturb the roots. At the same time, for the same medicinal herb procurement base, we also make reasonable arrangements to balance the procurement volumes.

　　In fact, in the Tibetan region, this concept of sustainable resource extraction doesn't need to be promoted by us. For thousands of years, the vast majority of our Tibetan people have lived precisely in this way, developing a simple yet profound philosophy of respecting nature. Since ancient times, they have regarded land and resources as the vital foundation for the nation’s survival and prosperity. Caring for nature is an integral part of the Tibetan people’s faith—and it is precisely this deep-rooted respect that has enabled the Tibetan people to thrive and multiply even in the harshest natural environments.

　　“More hopeful to become a school that cultivates talent.”

　　WTO Economic Digest: In terms of the sustainable development of China’s national pharmaceutical industry and companies, what other challenges does Qizheng Tibetan Medicine still face? What plans does it have for addressing these challenges in the future?

　　Feng Ping: First and foremost, we must return to the issue of resource sustainability. For the long-term development of Qizheng Tibetan Medicine, it is imperative that we adhere to a philosophy that emphasizes research into resource sustainability as well as the systematic integration of our entire operational framework—from production and sales to other related processes. This is a critically important issue in sustainable development.

　　In fact, we still face many challenges. One of them is that we need to do more work in terms of cultural heritage preservation and market transformation. As the Tibetan medicine industry enters the modern market, it encounters certain challenges: the Tibetan medical system remains relatively unknown to the general public. Therefore, we must conduct in-depth research into its theoretical framework, material basis, mechanisms of action, and proven efficacy, and then promote this knowledge more widely.

　　The second challenge, in my view, remains the development of talent. Most of our ethnic medicine enterprises are located in remote regions, where the availability of talent—especially modern management talent—is far less abundant compared to other areas. In these ethnic regions, particularly in Tibetan areas, we believe it’s essential to invest heavily in employee development and continuously nurture local talent, enabling them to keep growing as the enterprise evolves. This is the very force that will help us go further and achieve greater success.

　　WTO Economic Digest: You mentioned the company’s challenges in talent development and also indicated that the company plans to invest more resources and effort in this area. What are some particularly noteworthy experiences Qizheng Tibetan Medicine has gained in this regard? How can the cultivation and development of ethnic minority talents bring about positive changes for both Qizheng Tibetan Medicine and the local community?

　　Feng Ping: At its core, Qizheng is a company guided by values. In the Tibetan region, we hope that Qizheng will not just be a business—but rather, a school dedicated to nurturing talent. This is the heartfelt wish of our Chairwoman, Ms. Lei Jufang.

　　We’ve indeed gained considerable insights into talent development in the Tibetan areas. First, we’ve developed tailored training programs that take individual aptitudes into account. We’ve designed differentiated training courses for factories in both Tibetan areas and inland regions, with specific training plans customized for different roles—such as frontline workers, management teams, and core technical personnel. For example, we offer Chinese culture classes specifically for Tibetan employees, while such classes are not provided for employees from inland regions.

　　When selecting talent, we go directly to local vocational and technical schools, taking into account the actual conditions of local talent. At the same time, we strengthen technical guidance for frontline employees, ensuring that they can not only integrate smoothly with the local culture but also adapt effectively to the demands of our modern, large-scale industrial production. The same approach applies to our management team. We place great emphasis on cultural understanding, communication, and integration, while reinforcing modern management principles. We hope that the talents honed at Qizheng will not only become assets for the company itself but also valuable contributors to the local community.

　　News Source: WTO Economic Review