China/Hong Kong Pharma Trade Set To Intensify

China's shift from state planning to the free market has led to adramatic strengthening of Hong Kong's economy, and observers now believe prospects for intensified cooperation in medicines between the two are good, especially because of HK's role as a bridge to the world outside China.

Pharmaceutical trade between the two is buoyant already, but HK focuses on international trade and its production capacity is limited. It has 400 dealers trading western drugs internationally, 350 traders in health care goods, 150 drug wholesalers and about 1,500 drugstores.

HK drug imports are said to be rising 15% a year and topped HK$10 billion ($1.3 billion) in 1996. Exports are also growing fast, reaching about HK$9 billion last year. China is HK's main medicines supplier and the largest consumer of HK-imported drugs, but transit trade volume now accounts for 75% of imports and 90% of exports between them.