While giving a thumbs up to the quality drives initiated by the Indian regulatory authorities for the pharma sector, the Chinese pharma companies, mainly those into the API manufacturing, have called for hassle-free export of ingredients to India and mooted free trade agreement between both the countries.

“China has many things to learn from India to improve its own policies and norms and ensure better quality for our products.  China should adopt the high standards of quality and also look to making strides in the generic industry here,” said Shi Shengyi, Secretary of the Board of Directors and official spokesperson of Sinopharm (China National Pharmaceutical Group Corporation).

Talking to Pharmabiz at the recent API China here, she said Chinese industry also should adopt the standard measures taken by the Indian counterparts to compete at the global level. “Indian government has been encouraging massively the generic industry,” she added. Sinopharm is one of the biggest pharma firms having strong presence from APIs to formulations, from medical devices to healthcare.

API China and Interphex China, the mega expo of the Chinese industry and organized by Reed Sinopharm Exhibitions in collaboration with a number of trade bodies, was held at Wuhan from April 25 to 27. India has been the top buyer of API from China in the recent years, accounting for about 15 per cent of total export share. “The total API exports to India during 2011-12 stood at 1.93 billion US dollars, accounting for 14.93 per cent share. India is a very key market for Chinese companies,” pointed out Yong Kuang, vice-president of Reed Sinopharm, which has organized the show.

Claiming that generally the Chinese firms faced no big regulatory hurdles for exports to India, however several Chinese players wanted India to be more `open-minded’ and promote the bilateral trade between the two neighbours.

“Our challenge is to ensure low prices and higher quality when it comes to exports of APIs to India. This affects our profitability. Indian Government should be more open-minded and even free trade agreement could be a welcome move in this regard,” felt Bo Hui, vice-president of Dawnrays Pharmaceutical (Holdings) Limited. The Government should ease the norms, if not allowing incentives. India is the most important market for Chinese manufacturers of ingredients and the government should not go for any anti-import or harsh laws to discourage the foreign players, he said.

While calling for inspections both ways, he also suggested that China should now start sending officials to India for training. He also welcomed inspections of its facilities by the Indian regulatory officials any time.

Bo Hui also conceded that China was lagging behind India in technology and quality of products in the pharmaceutical sector and local firms should learn many things from their Indian counterparts.

Yao Jian Yong, a senior official of Shandong  Xinhua Pharmaceuticals, suggested that  the companies on both the sides also should take initiative to take the ongoing Indo-China trade ties further ahead through all possible platforms.  Some others expressed keen interest to explore Indian market.

“We have not much presence in India which is also very strong in its traditional medicines. However, we are also constantly assessing the chances for finding market for our products,” said Qinglin Zhong of Sichuan Xieli Pharmaceutical Co Ltd, a key player in the exports of natural APIs to Europe and the US.

Similarly, Dalian Toyounger Chemical Industry Co Ltd also disclosed that it has plans for India in the future. “Right now our main markets are Japan and South Korea. But, we are thinking of exploring the potential in India,” said its board chairman Qin Shu Chun. The Chinese companies in general felt that the exports to India have been stable over the years, except for brief time due to the global recession.  “The exports to India has been steady and vibrant in the recent years. India is one of the key markets for all major companies in China,” pointed out Wilson Wu of Angel Yeast Co Ltd.

One of the worries faced by the Chinese exporters was the weak rupee. “The weakening of the rupee against dollar has affected our profitability in the recent times,” pointed out Xun Wang, CEO of AnHui Asynderm Pharm Co Ltd which has over 30 clients in India in intermediates.