Traditional Chinese medicine is a medicine that guides the collection, processing and preparation of traditional Chinese medicine theory, explains the mechanism of action, and guides clinical application. Traditional Chinese medicine totaly comes from natural medicine and its processed products, also including animal medicine,botanical medicine, animal medicine, mineral medicine and some chemical and biological products. Since Chinese medicines are mostly botanicals, there is a saying that “all medicines are based on herbs”.
Interpretation of Traditional Chinese Medicine
Traditional Chinese medicine is mainly composed of botanical medicine (root, stem, leaf, fruit), animal medicine (viscera, skin, bone, organ, etc.) and mineral medicine. the majority of traditional Chinese medicines Because of botanicals account are also called Chinese herbal medicines. Peaceful medicine. The Three Kingdoms Wei Jikang’s “On Health Preservation”: “So Shennong said: ‘Supreme medicine nourishes life, Chinese medicine nourishes nature’, who sincerely knows the principle of life and life, and it is also through supplementary nourishment.” Jin Zhanghua’s “Natural History” Volume 7: ” Traditional Chinese medicine nourishes the nature, it is said that the acacia is angry, and the daylily forgets its worries.” Song Xuxuan’s poem “The Temple”: “I often complain of many diseases and dislike traditional Chinese medicine.
Since May 2012, favorable policies for the traditional Chinese medicine industry have appeared frequently: on May 30, the Ministry of Commerce released the “Analysis Report on the Circulation of Key Chinese Medicinal Materials in 2011”; on May 31, the State Administration of Traditional Chinese Medicine issued the “Development of Traditional Chinese Medicine”. “Twelfth Five-Year Plan”; on June 20, the Ministry of Industry and Information Technology issued a statement on the companies that the state intends to support the production of Chinese medicinal materials in 2012. 
Foresight believes that the state has long characterized the traditional Chinese medicine industry as a “national strategic industry”, and in the future, it is bound to increase its support for excellent enterprises in the traditional Chinese medicine industry, especially the traditional Chinese medicine industry, as evidenced by the relevant policies issued frequently above.
According to the statistics of “Prospects of China’s Traditional Chinese Medicine Industry In-depth Research and Investment Strategic Planning Analysis Report”, more than 80% of urban residents in my country have purchased Chinese patent medicines by themselves. The huge demand provides huge space for the further development of the domestic Chinese medicine industry.
In the future, the policy will give higher prices to some varieties of medicinal materials with good quality, high quality and advanced technology, so that advantageous enterprises can enjoy the premium of high standards of product quality, which is bound to enhance the competitive position of advantageous enterprises in the industry. The competitive position of the dominant enterprises in the industry has risen, providing a larger market share and development opportunities for enterprises with strong R&D strength, standardized production, and high-quality and affordable products.
According to the “Twelfth Five-Year Plan” of medicine, traditional Chinese medicine and biomedicine of various provinces and cities, most provinces and cities expect the growth rate of traditional Chinese medicine industry to be between 20% and 25%, some provinces and cities are expected to be above 30%, and a few provinces and cities are lower than 15%. In the planning and forecasting of several key Chinese medicine provinces and cities, the growth rate of the Chinese medicine industry is above 20%, of which the average annual growth rate of Shandong Province may reach more than 30%, and Sichuan and Jiangxi are about 25% and 23% respectively.
It is predicted that during the “Twelfth Five-Year Plan” period, the Chinese medicine industry will maintain an average annual growth rate of more than 12%, and the total output value will exceed 559 billion by 2015. However, based on the specific plans of various provinces and cities, it is expected that the overall growth rate of my country’s traditional Chinese medicine industry will be higher than that of the traditional Chinese medicine business. According to the forecast of the “Twelfth Five-Year Plan”, the annual growth rate may reach more than 20%, and the total industrial output value of the traditional Chinese medicine industry may reach about 700 billion by 2015.
The actual consumption market of domestic medicines is urban residents, and the countryside is a huge potential market, and the capacity of the pharmaceutical market will be further expanded. Chinese medicine includes Chinese patent medicine, Chinese herbal medicine, and Chinese herbal decoction pieces, of which patent medicine is the most important part.
According to the data of Zhiyan Consulting: in the first half of 2012, the output of Chinese patent medicine was 1,415,896 tons, a year-on-year increase of 25.01%;
With the improvement of national consumption level, more and more people begin to pay attention to health care, and the market demand for various types of proprietary Chinese medicines will continue to increase. On the other hand, after years of operation of Chinese patent medicine companies, the awareness of Chinese patent medicines in overseas markets is gradually increasing. Chinese patent medicines have begun to apply for registration in the European and American markets, and the export situation of Chinese patent medicines in my country is optimistic in the future. During the “Twelfth Five-Year Plan” period, China’s proprietary Chinese medicine industry has broad prospects for development.