China Encourages Foreign Investment in Pharmaceutical R&DChina encourages foreign pharmaceutical companies to expand their business from manufacturing to research and development, according to a senior Chinese official in Beijing."We support transnational corporations to set up R&D centers in China, and develop new products together with domestic institutes and hospitals," said Yu Mingde, director of Pharmaceutical Department under the State Economic and Trade Commission. He said that foreign-funded research centers will be exempt from import tariff and custom taxes. Facilities should be made in China and the cost should be included in the total investment. Business taxes will also be exempted if foreign companies transferred technology to the Chinese side, the official said at the Fourth Beijing Biotech and Pharmaceutical Industry Development Forum. Yu's department is responsible for macro adjustment and control of China's giant pharmaceutical industry. Basic guidelines for foreign investment in the sector includes developing new products, new technology and exports. He also encouraged overseas companies to start business in the central and western regions. "The success of Xi'an-Janssen Pharmaceutical Ltd. has proved that foreign companies have enormous room to develop if they carry out correct strategies," Yu said. Xi'an-Janssen Pharmaceutical Ltd. is a joint venture of Johnson and Johnson (J&J), the international manufacturer of health care products. |
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