China's Pharmaceutical Trade in 2025: Growth, Innovation, and Resilience

In 2025, China's pharmaceutical and healthcare product trade demonstrated significant resilience and structural strength despite a complex and volatile international environment. The total value of imports and exports reached USD 201.717 billion, marking a year-on-year increase of 1.18%. Exports amounted to USD 111.341 billion, rising by 3.14%, while imports stood at USD 90.376 billion, a slight decline of 1.14%. This resulted in a trade surplus of USD 20.965 billion, reflecting a pattern of ‘strengthened export momentum and optimized import structure.'

Export Composition: A Shift Towards High-Value Products

Western pharmaceutical products and medical devices were the dominant categories in China's exports, together making up 95.4% of total export value. Western pharmaceutical exports amounted to USD 55.786 billion, marking a year-on-year increase of 3.41%, while medical device exports reached USD 50.469 billion, rising by 3.54%. Exports of traditional Chinese medicine (TCM) stood at USD 5.087 billion, showing a 3.62% decline year-on-year, continuing the adjustment trend seen in recent years.

Western pharmaceutical exports exhibited a notable trend: ‘strong raw materials, rising preparations.' Exports of Western pharmaceutical raw materials amounted to USD 42.867 billion, representing 76.8% of total Western pharmaceutical exports. Although this category saw a marginal decline of 0.27%, it still showcased stability in the face of market pressure. In contrast, exports of Western proprietary medicines surged by 27.29%, reaching USD 8.841 billion, marking the most significant growth in the Western pharmaceutical sector.

Medical device exports showed steady growth, with some sub-sectors outperforming others. Hospital diagnostic and therapeutic equipment exports grew by 8.11% to USD 24.057 billion, reflecting China's competitive edge in medical equipment driven by technological advancement and policy support. Exports of disposable consumables and medical dressings also increased, though at a slower pace, rising by 3.77% and 0.51%, respectively. However, exports of health and rehabilitation products, along with dental equipment, saw declines.

Imports: A Modest Decline but Sustained Demand

Imports totaled USD 90.38 billion, marking a 1.1% decrease compared to the previous year. Despite this decline, the import scale remained at a relatively high level, indicating ongoing demand from the Chinese market for global pharmaceutical products. Western pharmaceutical imports represented the largest share at 57.9%. Among these, imports of Western pharmaceutical raw materials reached USD 12.38 billion, a 14.5% increase year-on-year, the highest growth rate in this category. The United States was the largest supplier of these imports, contributing USD 13.71 billion, or 15.2% of the total, followed by Germany and Ireland.

Key Characteristics of China's Pharmaceutical Trade in 2025

1. Export-Driven Growth

Despite external uncertainties, China's pharmaceutical industry remains a pivotal player in global healthcare. The industry's transition from simply ‘going global' to ‘global advancement' is a testament to its growing role in the global pharmaceutical supply chain.

2. Shift Towards High-Value-Added Products

China's trade structure is optimizing. The explosive growth in exports of both Western and Chinese proprietary medicines signals a shift from raw material supplies to providing innovative drugs and complex formulations. Meanwhile, medical device exports are increasingly dominated by higher-tech products, such as hospital diagnostic and therapeutic equipment, which have become the main growth driver.

3. Market Diversification and Resilience

China has expanded its pharmaceutical export markets, mitigating risks associated with overreliance on any single region. While exports to the US have faced pressure, regions such as the EU, Belt and Road partner countries, and Russia have seen robust growth, demonstrating a dynamic ‘when one door closes, another opens' effect. The Belt and Road Initiative has proven to be a significant driver of growth in these new markets.

4. Innovation-Driven Growth

Overseas licensing agreements have surged, enhancing global deployment of R&D outcomes. By 2025, overseas pharmaceutical licensing deals exceeded 150 transactions, with a total value surpassing USD 130 billion. This marked an increase from 2024, with innovative drugs becoming the primary focus of these agreements. Additionally, China led the world in approving innovative drugs, with 76 new drugs receiving approval from the National Medical Products Administration.

Conclusion: A Shift from Scale Expansion to Quality Enhancement

In conclusion, China's pharmaceutical trade in 2025 demonstrates steady overall growth, with favorable export trends, a slight decline in imports, and continued structural optimization. The sector is transitioning from ‘scale expansion' to ‘quality enhancement,' driven by high-value products, emerging markets, and innovation outcomes. The resilience of China's pharmaceutical trade will continue to unfold as the global pharmaceutical supply chain undergoes restructuring, presenting both challenges and opportunities. While progress is evident, breakthroughs are still needed in the internationalization of traditional Chinese medicine and further optimization of import structures.