The Longyao Industry Association was established yesterday.

　　According to our reporter, February 2 marks the Dragon Raising Day. On February 23, the Gansu Province Longyao Industry Association was officially established, with the goal of providing coordinated services to promote the development of the Longyao pharmaceutical industry. This marks the official launch of a comprehensive revival for the Longyao industry, which once held an important historical position in China’s pharmaceutical history. Nearly a hundred prominent leaders from domestic and international pharmaceutical chambers of commerce and associations, along with 67 Gansu-based pharmaceutical enterprises, gathered together to jointly discuss the grand plan for the development of the Longyao industry.

　　After the meeting, Liu Weiping, Secretary of the Provincial Party Committee and Director of the Standing Committee of the Provincial People’s Congress, as well as the Deputy Secretary of the Provincial Party Committee and Governor, met with the President of the Longyao Association, several strategic advisors to the association, association experts, and heads of partner chambers of commerce.

　　Lei Jufang, Chairperson of Gansu Qizheng Industrial Group Co., Ltd., has been elected as the President of the Longyao Pharmaceutical Industry Association.

　　Since the launch of the 12th Five-Year Plan, the government has been strategically planning for the scientific development of Gansu’s economy and promoting the “Long” brand. The Longyao (Gansu medicinal herb) industry has been identified by the Gansu Provincial Party Committee and Provincial Government as a key strategic emerging industry to be vigorously developed during the 12th Five-Year Plan period. The deployment and policy measures for the development of the Longyao industry under the 12th Five-Year Plan have now been released. To foster and strengthen the Longyao industry, in accordance with the plan proposed by the Coordination Leading Group for the Development of the Longyao Industry—that is, “to prepare for the establishment of a Longyao Association and provide coordinated services for the development of the Longyao industry”—the Longyao Industry Association was officially established after a year-long preparation period, under the auspices of the Longyao Office of the Gansu Provincial Commission of Industry and Information Technology. The association was initiated by six entities: Gansu Qizheng Industrial Group Co., Ltd., Lanzhou Institute of Biological Products, Lanzhou Foci Pharmaceutical Co., Ltd., Lanzhou Dadelisheng Biochemical Pharmaceutical (Factory) Co., Ltd., and Sinopharm Holding Gansu Co., Ltd., and has since been joined by 67 Gansu-based pharmaceutical enterprises.

　　The Longyao Industry Association will leverage our province’s resource and industrial advantages, focusing primarily on medicinal herb cultivation and processing enterprises, pharmaceutical (healthcare product) manufacturing and distribution companies, as well as relevant research institutes and organizations. It will also forge alliances with peer organizations from other provinces and overseas, attracting participation from well-known domestic and international enterprise groups in the development of the Longyao industry. By pooling resources from multiple parties, the Association will fully harness the enthusiasm and active involvement of enterprises in the development of the Longyao industry. The Longyao Industry Association will play a proactive role in accelerating the construction of industrial bases and extending industrial chains, fostering regional economic growth, providing information technology training services, establishing and maintaining brands, creating both domestic and international market platforms, strengthening market promotion and matchmaking efforts, and conducting cooperative exchanges—all aimed at scaling up and strengthening the Longyao industry. Upholding its mission, the Longyao Industry Association will transform the advantage of exporting Longyao herbs into an advantage of exporting deeply processed Longyao products. It will ensure that innovative craftsmanship of authentic Longyao herbs becomes a guarantee and hallmark for related pharmaceuticals and food safety. Ultimately, the Longyao industry will emerge as a new highlight in the development of Gansu’s distinctive local industries.

　　It is undeniable that Gansu, as a province rich in Chinese medicinal material resources, still largely supplies its medicinal herbs primarily as hospital-grade materials or raw products to the market. Modern Chinese medicine preparations, health supplements, cosmetics, food additives, and other products derived from these herbs remain relatively scarce, and the province’s capacity for sophisticated processing and value-added transformation is weak, resulting in low processing benefits. However, we must also recognize that after years of development, medicinal herb cultivation in our province has reached a sizable scale, providing a solid foundation for accelerating the growth of the Longyao industry. In 2010, the province’s cultivated area for Chinese medicinal herbs reached 2.52 million mu, with a total output of 520,000 tons. Among the five major categories of authentic medicinal herbs—Angelica sinensis (Danggui), Codonopsis pilosula (Dangshen), Astragalus membranaceus (Huangqi or Hongqi), Rheum palmatum (Dahuang), and Glycyrrhiza uralensis (Gancao)—Gansu accounted for 90%, 60%, 50%, 50%, and 25% respectively of the nation’s total production of these varieties. Moreover, the export volume of these five herbs accounted for over 80% of the national total. Currently, in Gansu Province’s optimal ecological zones for high-quality, authentic Chinese medicinal herbs, sizable medicinal herb production bases have been established: a high-quality Angelica sinensis base centered around Min County, Dangchang, and Zhangxian; a Codonopsis pilosula base centered around Weiyuan, Longxi, Lintao, and Wen County; an Astragalus membranaceus base centered around Longxi and Wudu; a high-quality Rheum palmatum base centered around Lixian, Weiyuan, and Huating; and a Glycyrrhiza uralensis base centered around Jinta, Gaotai, and Minqin.

　　The pharmaceutical and medicinal herb industry in Gansu Province continues to grow stronger, laying a solid foundation for its rapidly developing industrial landscape. The number of enterprises with total assets exceeding 50 million yuan has reached 17 across the entire industry. Among them, Qizheng Tibetan Medicine, Lanzhou Foci, and Duyiwei have become listed companies on China’s A-share market. Ten enterprises have annual sales revenues surpassing 100 million yuan, and nine products alone have annual sales exceeding 100 million yuan. All key pharmaceutical manufacturers have successfully obtained GMP certification, significantly enhancing their equipment and management capabilities. Notably, the Lanzhou Institute of Biological Products has entered the top 100 pharmaceutical companies nationwide and has established a leading position in China’s biopharmaceutical sector.

　　Meanwhile, the Longyao pharmaceutical industry boasts a solid foundation in scientific research and development. Universities, research institutes, and enterprise technology centers have jointly established the basic framework for drug R&D in our province, providing a strong foundation for pharmaceutical research. Specifically, we have established: one national-level enterprise technology center, 11 provincial-level enterprise technology centers, two key laboratories co-built by the provincial and ministerial authorities, and a provincial-level Longyao Engineering Technology Center that has already been approved and set up.

　　The Longyao industry is a strategic emerging industry identified by the Gansu Provincial Party Committee and the provincial government as a key area for development during the 12th Five-Year Plan period. However, at present, it remains a relatively weak industry. To accelerate the transformation of our province’s advantages in traditional Chinese medicinal materials into economic strengths and to foster and strengthen the Longyao industry, in accordance with the spirit of the General Office of the State Council’s “Several Opinions on Further Supporting Gansu’s Economic and Social Development” (Guoban [2010] No. 129), the Provincial Party Committee and the provincial government formulated and issued in July 2010 the “Opinions on Accelerating the Development of the Longyao Industry,” and established a Coordination Leading Group to promote the development of the Longyao industry. From 2010 to 2011, the entire Longyao industry experienced unprecedented favorable policies in the pharmaceutical sector, presenting a rare opportunity for its development.