China's biotechnology industry is emerging as a key player that is shaking up the U.S.-centric global drug market. Amid U.S.-China competition and the pandemic, the strategic value of the pharmaceutical and biotech sectors has increased, with China rapidly establishing its presence in innovative drugs and advanced biotechnologies, supported by a vast domestic market and government backing.
According to market research firm Grand View Research, the size of China's biotechnology market is expected to expand from approximately $74.2 billion in 2023 to $263 billion by 2030, more than tripling in size.
China's pharmaceutical and biotech industry ranks second globally in terms of revenue, following the United States. The Korea Pharmaceutical and Bio-Pharma Manufacturers Association reported that China's pharmaceutical and biotech revenue is projected to reach approximately 2.9763 trillion yuan (about $635 billion) by 2024. The report noted that China is rapidly building an industrial ecosystem that integrates production, research and development (R&D), clinical trials, and technology commercialization, positioning itself as a central player in the global pharmaceutical competition.
A notable shift in the industry structure is occurring, moving from a focus on generic drugs to innovative drugs and biotechnologies in recent years. While generics still account for about 50% of the Chinese pharmaceutical market as of 2024, their share has been declining over the past five years. In contrast, innovative drugs are leading market expansion with an impressive average annual growth rate of 8.53%. This indicates a transition from being a low-cost generic drug supplier to a market that simultaneously produces innovative technologies and drug candidates.
Recently, global pharmaceutical companies have been signing large technology transfer and co-development agreements with Chinese biotech firms. This shift demonstrates that China is no longer just a manufacturing hub but is recognized as a source of innovative drugs and a co-development partner. Chinese companies are particularly gaining traction in the fields of antibody-drug conjugates (ADC) and AI drug development.
In the contract development and manufacturing organization (CDMO) sector, competitiveness is also on the rise. WuXi Biologics is a leading example, reporting a 16.7% increase in revenue to 21.8 billion yuan (approximately $4.65 billion) last year compared to 2024. The number of new projects is also on the rise, with 209 new projects secured last year, a 41% increase from 148 in 2024. By the end of last year, the total number of projects held reached 945, with half of the new projects originating from the U.S., indicating continued global market engagement.
Market analysts believe that China's large domestic market, relatively abundant workforce, processing capabilities, and rapid facility expansion are combining to evolve the country into an integrated biotech hub capable of conducting both R&D and production. The trend of selecting China as a clinical trial partner is also increasing, driven by lower costs and faster trial speeds compared to the U.S. According to the Korea Bio Association, the National Medical Products Administration (NMPA) of China reported a record high of 5,215 clinical trials conducted in the country last year, a 6.4% increase from the previous year.
This trend is also prompting changes in the domestic pharmaceutical and biotech sectors. Collaborations with China are evolving beyond simple market entry to sharing responsibilities for candidate substance discovery, early clinical trials, and global commercialization.
Samsung Biologics has opened its first overseas R&D center in Beijing to enhance its capabilities in ADC-focused drug development. LG Chem has structured a partnership with a Chinese biotech firm to jointly discover cancer drug candidates, conducting preclinical and early clinical trials locally while managing later development and commercialization directly. Aribio is collaborating with Puxing Pharmaceutical to advance the clinical phase III trials and commercialization of its dementia treatment, AR1001, in China.
Yoon Hee-jung, head of the Bio Innovation Strategy Team at the Korea Institute of Science and Technology Evaluation and Planning (KISTEP), stated, "Chinese companies are emerging as key partners in co-development in advanced fields such as bispecific antibodies, ADCs, and CAR-T (chimeric antigen receptor T-cell) therapies." She added, "There is a need to collaborate by combining China's assets, clinical capabilities, and market access with our country's platform, manufacturing, and quality capabilities."
* This article has been translated by AI.
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