Unearthing Value in Trends
Since the promulgation and implementation of the Law on Traditional Chinese Medicine in 2017, the Party Central Committee and the State Council have attached great importance to the cause of TCM, issuing a series of policies and documents that have ushered in the best-ever period of development opportunities for TCM. This article systematically examines these opportunities from the perspectives of application, institutional platforms, and policy frameworks, emphasizing that the industry should proactively plan and expand its operations in this exceptional environment, making informed choices and accurate assessments to effectively seize these opportunities.
I. Traditional Chinese Medicine Is Now at the Best Historical Opportunity for Development
Strategic plans, regulations, and policy documents have been issued one after another, demonstrating high-level attention from the central to local levels!
“Traditional Chinese medicine, as a unique health resource, a resource of enormous economic potential, a science and technology resource with original advantages, an outstanding cultural resource, and an important ecological resource of our country, plays a vital role in economic and social development.” On February 22, 2016, the State Council issued the Notice on Printing and Distributing the Outline of the Strategic Plan for the Development of Traditional Chinese Medicine (2016–2030), which begins by clearly articulating the unique and immense advantages of TCM.
The Law on Traditional Chinese Medicine came into effect on July 1, 2017.
Leaders of the Party and the state have repeatedly emphasized at important occasions such as the 19th National Congress of the Communist Party of China, meetings of the Central Commission for Comprehensive Deepening Reform, and the Two Sessions: “Uphold the equal importance of traditional Chinese medicine and Western medicine; uphold the equal importance of traditional Chinese medicine.”
On October 20, 2019, the CPC Central Committee and the State Council issued the “Opinions on Promoting the Inheritance, Innovation, and Development of Traditional Chinese Medicine” and established an inter-ministerial joint conference, outlining 125 key tasks under the framework of 20 policy measures. As a result, the status of TCM has been elevated to an unprecedented new height, ushering in a new chapter in the revitalization and development of TCM in the new era and marking a milestone in the history of TCM development.
On October 25, 2019, the National Conference on the Development of Traditional Chinese Medicine was held. On the eve of the conference, General Secretary Xi Jinping issued important instructions on TCM work, and Premier Li Keqiang provided written directives. The eight-character slogan “Inherit the essence, uphold orthodoxy while fostering innovation” has thus charted a clear course for all sectors of the TCM field—namely, to both preserve and carry forward the profound heritage of TCM while embracing innovation and progress.
According to statistics from the State Administration of Traditional Chinese Medicine, on the first anniversary of the National Conference on TCM, 19 provinces and autonomous regions—including Jilin Province, Hebei Province, Shanxi Province, Sichuan Province, Henan Province, Guangdong Province, the Guangxi Zhuang Autonomous Region, Shanghai Municipality, Gansu Province, the Xinjiang Uygur Autonomous Region, Jiangxi Province, Heilongjiang Province, Shaanxi Province, Tianjin Municipality, the Xinjiang Production and Construction Corps, Anhui Province, Fujian Province, Chongqing Municipality, Qinghai Province, and Hunan Province—formulated and issued implementation opinions or measures to promote the inheritance and innovative development of TCM, tailored to their respective local conditions.
Nine provinces and municipalities—Shanghai, Gansu Province, Guangdong Province, Tianjin Municipality, Jilin Province, Jiangxi Province, Hebei Province, Chongqing Municipality, and the Guangxi Zhuang Autonomous Region—have convened conferences on traditional Chinese medicine.
Hebei Province, Hubei Province, Sichuan Province, Jiangxi Province, Shaanxi Province, Anhui Province, Jiangsu Province, Hunan Province, Heilongjiang Province, Beijing Municipality, Jilin Province, and Ningxia have implemented the Law on Traditional Chinese Medicine by completing the revision or promulgation of their respective regulations on traditional Chinese medicine.
Relevant authorities, including the National Health Commission, the State Administration of Traditional Chinese Medicine, and the National Development and Reform Commission, have also issued a series of documents to support the development of traditional Chinese medicine.
II. The Most Clear-Sighted Application Support Policies (Application Side)
A joint document issued by multiple government departments clarifies the need to develop and apply traditional Chinese medicine across all types of hospitals, thereby closing the loop of the TCM industrial chain and ushering in a new round of rapid market expansion and growth for the TCM industry.
On June 30, the day before the centenary of the founding of the Communist Party of China, in order to thoroughly implement General Secretary Xi Jinping’s important expositions on TCM work, earnestly carry out the “Opinions of the CPC Central Committee and the State Council on Promoting the Inheritance, Innovation, and Development of Traditional Chinese Medicine” and the “Several Policy Measures for Accelerating the Distinctive Development of TCM,” and strengthen TCM work in general hospitals (defined as second-level and above general hospitals, the same applies hereinafter), the National Health Commission, the National Administration of Traditional Chinese Medicine, and the Health Bureau of the Logistics Support Department of the Central Military Commission jointly issued the “Opinions on Further Strengthening TCM Work in General Hospitals and Promoting the Collaborative Development of TCM and Western Medicine,” which sets forth clear arrangements for bolstering TCM work in the country’s largest public general hospitals.
On July 1, the traditional Chinese medicine sector surged, with 63 out of 68 TCM concept stocks posting gains and several hitting their daily upper limits.
The opinions have the following salient characteristics:
1. Clarified leadership responsibilities.
It is required that health administrative departments at all levels, authorities in charge of traditional Chinese medicine, military health departments, and general hospitals at all levels further enhance their awareness of the importance of collaborative efforts between Western and traditional Chinese medicine and create favorable conditions for their coordinated development; moreover, these competent authorities are required to strengthen supervision and guidance to ensure the effective implementation of relevant policies and requirements.
Public general hospitals are required to designate relatively stable hospital leaders to oversee TCM-related work, ensure the effective implementation of TCM policies and measures, and clearly assign responsibility within the medical administration department for the overall management of TCM services across the hospital.
In particular, the joint issuance of this document by the Health Bureau of the Logistics Support Department of the Central Military Commission has set forth identical requirements for strengthening TCM work in military hospitals, thereby further clarifying the policy direction for TCM initiatives in these institutions.
2. It is required to innovate the integrated Chinese–Western medicine collaborative care model by incorporating traditional Chinese medicine into the multidisciplinary consultation system, strengthening TCM–Western medicine collaboration across all clinical departments in general hospitals, launching interdepartmental TCM–Western medicine collaborative research initiatives within general hospitals, and deepening such collaborative efforts between general hospitals and TCM hospitals, thereby providing high-quality integrated TCM–Western medicine healthcare services to the public.
3. Strengthen the establishment of traditional Chinese medicine pharmacies in general hospitals, specifying that qualified general hospitals, particularly those rated as Grade III Class A, shall establish such pharmacies in accordance with the “Basic Standards for Hospital Traditional Chinese Medicine Pharmacies,” providing services for dispensing raw TCM herbs, proprietary TCM medicines, and TCM formula granules, as well as decocting services for raw TCM herbs.
This provides clear and robust policy guidance for the use of traditional Chinese medicinal decoction pieces (including decoction services) and proprietary Chinese medicines, particularly the modern innovative product of formulated granules of traditional Chinese medicine, in large Grade-III general hospitals.
4. The Opinions specifically state: “Specialty hospitals, infectious disease hospitals, and maternal and child health institutions may, in light of their own specific circumstances, refer to these Opinions to refine relevant systems, strengthen TCM work, and promote the coordinated development of TCM and Western medicine.”
III. The Broadest Scope of Application (At the Terminal End)
Comprehensively advancing the quality improvement and capacity expansion of TCM medical resources across all levels and types of healthcare institutions has created a broad-based platform for the development of TCM, opening up vast prospects for its further growth.
In recent times, various national competent authorities have issued a series of documents in quick succession, setting forth requirements and providing planning and guidance for TCM work in general hospitals, community (primary-level) hospitals, maternal and child hospitals, rehabilitation medicine institutions, private hospitals, and other categories. These measures are aimed at comprehensively enhancing the quality and expanding the capacity of TCM medical resources across all levels and types of healthcare institutions, thereby creating a broad platform for the development of TCM and opening up vast prospects for its further growth.
The “Opinions on Further Strengthening TCM Work in General Hospitals and Promoting the Coordinated Development of TCM and Western Medicine” explicitly states: “General hospitals are one of the backbone components of the TCM service system, an important platform for the integration of TCM and Western medicine, and a crucial stronghold for the inheritance and innovation of TCM.”
On June 4, 2021, the General Office of the State Council issued the “Opinions on Promoting the High-Quality Development of Public Hospitals,” which stated: “Based on existing resources, we will plan and establish National Medical Centers, Clinical Medical Research Centers, Regional Medical Centers (all of which shall include Traditional Chinese Medicine; the same applies hereinafter), and Centers for the Inheritance and Innovation of Traditional Chinese Medicine.”
On June 17, 2021, the National Development and Reform Commission and other authorities issued the “Implementation Plan for Building a High-Quality and Efficient Healthcare Service System during the 14th Five-Year Plan Period,” which sets forth the implementation plan for developing the healthcare service system during the 14th Five-Year Plan period, with detailed specifications covering construction goals, tasks, supporting measures, funding arrangements, and guarantee mechanisms. In particular, Section 5 of the plan dedicates a special section to the “Project for Promoting the Inheritance and Innovation of Traditional Chinese Medicine,” under which central budgetary investment will be prioritized to leverage the holistic medical strengths of TCM, facilitate the establishment of a TCM service system that integrates preventive healthcare, disease treatment, and rehabilitation, and thereby promote the inheritance, innovation, and development of TCM.
(1) Construction 30 Approximately [number] National Centers for the Inheritance and Innovation of Traditional Chinese Medicine;
(2) Construction 35 approximately [number] national TCM bases for the prevention and control of epidemic diseases, covering all provinces,
Enhance the region’s capacity for the prevention and control of epidemic diseases using traditional Chinese medicine;
(3) Construction 50 Establish approximately a dozen “flagship” hospitals for integrated traditional Chinese and Western medicine, and vigorously promote an integrated TCM–Western medicine healthcare model characterized by institutional mechanisms, multidisciplinary teams, targeted measures, and demonstrable clinical outcomes.
(4) Selection 130 Establish approximately a number of key municipal-level TCM hospitals that feature distinctive TCM characteristics, demonstrate remarkable clinical efficacy, and serve as prominent models for wider adoption, thereby accelerating the expansion and balanced distribution of high-quality TCM medical resources within each province.
2. Community (Primary-Level) Hospitals
On July 13, 2020, the National Health Commission issued the “Notice on Fully Advancing the Construction of Community Hospitals,” which stipulates that community hospitals shall “enhance their capacity for TCM services and medical rehabilitation, promote integrated TCM service models, widely disseminate and apply appropriate TCM techniques, and provide TCM–specific services to the public.”
On June 10, 2021, the National Health Commission issued the “Notice on Accelerating the Development of Community Hospitals,” which calls for highlighting the distinctive service features of community hospitals by “emphasizing the advantages of traditional Chinese medicine—its simplicity, effectiveness, and affordability—strengthening the capacity-building of integrated TCM service areas (such as TCM clinics and national medicine halls), underscoring the unique characteristics of TCM, and encouraging the provision of comprehensive services that integrate TCM medical care, preventive healthcare, and rehabilitation.”
The Implementation Plan for Building a High-Quality and Efficient Healthcare Service System during the 14th Five-Year Plan period states: “All localities must earnestly fulfill their responsibility to invest in the development of primary-level medical and health institutions, including township health centers (community health service centers) and village health stations, so as to comprehensively enhance their capacity in public health, general practice, and traditional Chinese medicine. Local conditions, including the existing foundation for TCM development and available resources for infrastructure construction, should be taken into account in a coordinated manner to tailor initiatives to local circumstances, with the goal of achieving basic full coverage of county-level TCM medical institutions.”
3. Maternal and Child Health Hospital
On April 29, 2021, the National Health Commission and the State Administration of Traditional Chinese Medicine issued the “Notice on Issuing the Implementation Plan for Promoting TCM Work in the Field of Maternal and Child Health (2021–2025).”
(1) The objectives for TCM work in the maternal and child health sector have been announced:
By 2022, a basic network of TCM services in the field of maternal and child health had been established, and a number of standardized TCM clinical practice guidelines and TCM preventive healthcare intervention protocols for maternal and child health had been developed and promoted.
By 2025, TCM service capabilities in the field of women’s and children’s health will be significantly enhanced, with TCM services covering the entire life cycle of women and children, a stronger culture of TCM utilization, and better satisfaction of the health needs of women and children.
(2) Clear work measures have been formulated:
Promote the comprehensive provision of traditional Chinese medicine services in maternal and child health institutions, and designate the “proportion of outpatient TCM services” as a key performance indicator for such institutions. Leverage the role of TCM in the diagnosis and treatment of diseases affecting women and children; by 2022, develop and disseminate no fewer than five specialized TCM diagnostic and therapeutic protocols for gynecology and pediatrics, and develop and disseminate no fewer than ten integrated TCM–Western medicine diagnostic and therapeutic protocols for gynecology, pediatrics, and other specialties.
4. Rehabilitation Medicine
On June 16, 2021, the National Health Commission and seven other departments jointly issued the “Notice on Issuing the Opinions on Accelerating the Development of Rehabilitation Medical Services,” which requires rehabilitation medical institutions and departments to enhance their capacity for TCM-based rehabilitation services by implementing the “Implementation Plan for the Project to Enhance TCM Rehabilitation Service Capabilities (2021–2025)” and fully leveraging the important role of TCM in disease rehabilitation.
Encourage medical institutions that are so equipped to actively provide traditional Chinese medicine–based rehabilitation services. Strengthen the development and management of TCM rehabilitation service institutions, enhance the training and staffing of TCM rehabilitation professionals, conduct research on TCM rehabilitation protocols and technical standards, vigorously develop TCM–specific rehabilitation services, increase the supply of TCM rehabilitation services at the primary care level, and effectively enhance the capacity and quality of TCM rehabilitation services.
5. Privately Operated Healthcare
The state supports social entities in establishing TCM medical institutions with distinctive strengths and advantages, and encourages chain operations.
The state supports the use of information technology to underpin the development of the TCM service delivery system and vigorously promotes the development of internet-based TCM services.
IV. Adhering to the Actual Laws of TCM Development (Policy Dimension):
Drug research and development review, medical services, and other related areas all adhere to the characteristics and practical realities of traditional Chinese medicine.
1. The National Medical Products Administration is aligning the review and approval, quality supervision, and innovative development of traditional Chinese medicines with the characteristics and inherent principles of TCM.
On December 25, 2020, the National Medical Products Administration issued the “Opinions on Promoting the Inheritance and Innovative Development of Traditional Chinese Medicine,” calling for deepening reform and improving the review and approval system tailored to the unique characteristics of TCM.
Carry forward the essence of traditional Chinese medicine, emphasize a holistic perspective and original TCM thinking, and promote the upholding of core principles while fostering innovation in Chinese medicinal products. Uphold strict regulatory standards and strengthen quality and safety oversight of Chinese medicines. Pursue innovative development and advance the modernization of the Chinese medicine regulatory system and regulatory capacity.
2. Leverage the strengths and distinctive features of traditional Chinese medicine services, giving equal emphasis to both TCM and Western medicine and integrating the two to serve public health.
The “Opinions on Further Strengthening TCM Work in General Hospitals and Promoting the Collaborative Development of TCM and Western Medicine” calls for launching interdepartmental collaborative research initiatives on TCM–Western medicine integration within general hospitals.
General hospitals should closely align with their own development priorities and areas of clinical expertise, identify disease categories in which traditional Chinese medicine (TCM) offers distinct therapeutic advantages, and precisely determine the appropriate entry points and optimal timing for TCM intervention. Through collaborative efforts between TCM and Western medicine, they should conduct research to develop and implement integrated TCM–Western medicine diagnostic and treatment protocols that prioritize TCM where it is most appropriate and Western medicine where it is most suitable.
It is recommended that secondary general hospitals nationwide promote the TCM concept and approaches of “preventing disease before it occurs, preventing disease progression once it has occurred, and preventing relapse after recovery,” thereby fully leveraging the unique strengths and roles of TCM in “preventing disease before it arises, halting disease progression once it has developed, and guarding against recurrence after recovery.” At county-level hospitals, full use should be made of TCM’s role in the prevention and management of common, frequently occurring, and chronic diseases at the primary care level.
