Tag Archives: Chinese medicine and TCM

Shanghai TCM Procurement Disqualification Targets Herb Suppliers

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Shanghai, Sept 3, 2026 — Shanghai’s Medical Procurement Center said it will revoke procurement qualifications for certain selected traditional Chinese medicine (TCM) herb slices starting Sept 5, 2026, following a national alliance decision to disqualify individual enterprises for violations and place them on a non-compliance list.

Policy Snapshot

AttributeDetail
IssuerShanghai Medical Centralized Bidding and Procurement Affairs Management Center
DocumentNotice on the Revocation of Qualification for Procuring Certain Selected Traditional Chinese Medicine Herbs
Effective dateSept 5, 2026
Legal basisNational TCM Decoction Pieces Alliance Procurement Office announcement on canceling selected enterprise qualifications and listing violators
ScopeSelected TCM herb slices (decoction pieces) under the national alliance procurement program
Affected partiesMedical institutions with contracted purchase volumes for the disqualified varieties

Key Provisions

  • Qualification revocation — Starting Sept 5, the selected procurement status of the relevant TCM herb slices is canceled. Medical institutions must update their systems and complete invoice verification accordingly.
  • Volume fulfillment mechanism — Hospitals with contracted purchase volumes for the disqualified varieties may procure alternative selected products to fulfill their contracted obligations, with such purchases counted toward completion of the original volume commitments.
  • Compliance enforcement — The action aligns with the national TCM decoction pieces alliance’s penalty decision against enterprises found in violation of procurement rules.

Market Impact Analysis

The disqualification immediately removes one or more suppliers from Shanghai’s TCM herb procurement channel, forcing medical institutions to redirect orders to remaining qualified manufacturers within the national alliance catalog. For hospitals with active contracts for the affected varieties, the alternative procurement provision prevents supply disruptions while ensuring volume targets are met, though switching suppliers may involve re-qualification of product specifications and potential price adjustments.

For the broader TCM decoction pieces market, the enforcement action signals that the national alliance procurement regime—which has historically faced challenges with quality consistency and supply reliability—is actively penalizing non-compliant participants. This may strengthen the bargaining position of compliant suppliers and accelerate consolidation among smaller herb processors unable to meet alliance standards.

Forward-Looking Statement

Industry analysts expect the national TCM decoction pieces alliance to publish additional disqualification notices across other member provinces in the coming weeks, as the coordinated procurement framework applies penalties uniformly. Medical institutions in Shanghai should complete system updates and supplier transitions by the Sept 5 deadline to avoid procurement compliance gaps. The volume fulfillment flexibility—allowing alternative selected products to count toward original commitments—suggests regulators are prioritizing supply continuity over rigid contractual adherence, a pragmatic approach that may be replicated in future enforcement actions. Companies remaining on the qualified supplier list are positioned to capture redirected volume, potentially boosting market share in the fragmented TCM herb slices segment.-China Health Reform Pulse

Policy Source: https://www.smpaa.cn/xxgk/gggs/2026/09/03/24299.shtml

Ningxia Establishes Processing Standards for Traditional Chinese Medicinal Slices

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YINCHUAN — Ningxia’s Drug Administration has released new processing standards for two traditional Chinese medicinal slices: Da Ji Teng (Paederia foetida L.) and Xia Mai (wheat). The standards, effective immediately, follow a rigorous review process involving expert evaluation and public consultation, ensuring compliance with national pharmaceutical regulations.

Policy Breakdown

  • Regulatory Framework: The standards adhere to multiple national guidelines, including the Technical Guidance Principles for Revising Provincial Herbal Slice Processing Standards and the Notification on Filing Procedures for Provincial Herbal Slice Processing Standards.
  • Quality Control: The new standards aim to enhance the quality and safety of herbal medicines, crucial for Ningxia’s growing traditional medicine sector.
  • Market Implications: The move underscores Ningxia’s commitment to standardizing traditional medicine production, potentially boosting consumer confidence and market expansion.

Industry Impact
Pharmaceutical companies and traditional medicine producers are encouraged to align with the new standards to maintain market access. The regulations also signal opportunities for innovation in herbal medicine processing techniques.

Looking Ahead
Stakeholders should monitor how these standards influence regional and national market dynamics, potentially setting a benchmark for other provinces. The long-term goal is to foster high-quality development in Ningxia’s traditional medicine industry.-China Health Reform Pulse

For detailed implementation guidelines and the full standards, refer to the official announcements from Ningxia’s Drug Administration.

Policy Source: http://nxyjj.nx.gov.cn/yp/ggtg_37855/202505/t20250526_4916829.html

Policy Analysis & Guidance: Sichuan’s New TCM Granule Standards (2025)

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The Sichuan Provincial Drug Administration has released its second batch of trial standards for traditional Chinese medicine (TCM) granules, effective immediately. The new regulations, covering 21 herbal formulas including Buchengqie (Litsea cubeba fruit) and Dujiaojin (Striga asiatica), mark a significant step toward standardizing the TCM granule market. The two-year trial period underscores the province’s commitment to balancing traditional practices with modern pharmaceutical compliance.

Key Policy Highlights

  • 21 Granule Formulas Standardized: The standards specify manufacturing processes, active ingredient concentrations, and quality control metrics for each formula. For example, Buchengqie granules must contain 0.2–1.7 mg of rutin per gram, while Dujiaojin requires a minimum 12% ethanol-soluble extract.
  • Dynamic Compliance Framework: Trial standards will automatically expire if national-level regulations are issued during the two-year period, ensuring alignment with overarching Chinese pharmaceutical policies.
  • Enhanced Safety Protocols: Rigorous testing for heavy metals, aflatoxins, and chemical markers (e.g., matrine in Dujiaojin) reflects growing consumer demand for transparency in herbal medicine.

Industry Impact: Modernization vs. Tradition
Pharmaceutical firms operating in Sichuan’s TCM sector face heightened compliance costs but stand to gain from reduced regulatory uncertainty. The standards prioritize scientific validation without discarding traditional extraction methods, a delicate balance that could set a national precedent. Analysts estimate the move could streamline supply chains by 15–20% while elevating export credibility.

Global Implications
As China’s TCM exports reached $6.1 billion in 2024, Sichuan’s trial standards may influence international regulatory frameworks. Companies like Yunnan Baiyao and Tong Ren Tang could leverage these benchmarks to meet EU and U.S. pharmacopeial requirements, potentially unlocking $12 billion in untapped overseas markets.

Expert Reaction
“Standardization doesn’t mean sterilizing tradition—it’s about proving efficacy through modern science,” said Dr. Li Wei, director of the Chengdu Institute of TCM. “Sichuan’s approach could become a blueprint for other provinces.”

Looking Ahead
The trial period concludes in April 2027, with a review likely focusing on scalability and industry feedback. Investors should monitor whether national adoption follows, which would accelerate China’s TCM sector toward a projected $250 billion valuation by 2030.

For full regulatory details, see the attached standards document.

Policy Source:http://yjj.sc.gov.cn/scyjj/c103155/2025/4/2/26ab4079c5f049a0b4dbfb8401cbd41b.shtml