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51 U. Pac. L. Rev. 593 (2019-2020)
China's Innovative Turn and the Changing Pharmaceutical Landscape

handle is hein.journals/mcglr51 and id is 597 raw text is: 















China's Innovative Turn and the

Changing Pharmaceutical Landscape



Peter K. Yu*


I. IN TR O D U C T IO N   ................................................................................................ 5 9 3


II. CHINA  'S INNOVATIVE     TURN   .......................................................................... 595


III. CHANGING PHARMACEUTICAL LANDSCAPE ................................................ 602


IV . R A M IFIC A TIO N S  ............................................................................................ 60 8
        A . C hanging  D iscourse  ............................................................................ 608
        B . Internal C hallenges  ............................................................................. 6 11
        C . G lobal C om p lications ......................................................................... 6 16


V . C O N C L U SIO N   .................................................................................................. 6 2 0




                                    I. INTRODUCTION


     For more than a decade, China has been the world's leading supplier of
active pharmaceutical ingredients (APIs).' Today, it is not only the world's


* Copyright © 2020 Peter K. Yu. Professor of Law, Professor of Communication, and Director, Center for Law
and Intellectual Property, Texas A&M University. Earlier versions of this Article were presented at the
Changing Regulation of Pharmaceuticals: Pricing, Intellectual Property, Trade and Ethics Symposium at the
University of the Pacific McGeorge School of Law, as a keynote address at the 11 th Conference of the United
States-China Intellectual Property Institute hosted by the Faculty of Law of the Chinese University of Hong
Kong, and at the Webinar on China's Changing Role in the Global Pharmaceutical System: Implications for
National and Global Public Health organized by the Global Health Centre at the Graduate Institute of Geneva.
The Author is grateful to Albert Wai-Kit Chan, Christopher Holman, Lee Jyh-an, Michael Mireles, and Suerie
Moon for their kind invitations and Frederick Abbott and other event participants for their valuable comments
and suggestions.
     1. See Peter K. Yu, Access to Medicines, BRICS Alliances, and Collective Action, 34 AM. JL. & MED.
345, 363 (2008) [hereinafter Yu, Access to Medicines] ([China] already is the world's largest producer of
active pharmaceutical ingredients and is likely to be a very important player in the generic market.); see also
WORLD HEALTH ORG. [WHO], CHINA POLICIES TO PROMOTE LOCAL PRODUCTION OF PHARMACEUTICAL
PRODUCTS          AND         PROTECT         PUBLIC        HEALTH          17         (2017),
https://www.who.int/phi/publications/2081 China020517.pdf [hereinafter WHO CHINA STUDY] (on file with The
University of the Pacific Law Review) (prepared by Frederick Abbott) (China is the world's leading producer
and exporter of [APIs] by volume, accounting for 20% of total global API output. China produces over 2000
API drug products, with annual production capacity exceeding 2 million tons. (footnote omitted)). See
generally id. at 17-18 (discussing China's production and export of APIs).

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