Over the last 10 years, the Chinese government has implemented many regulatory initiatives to increase the country’s competitiveness on the global stage in drug development. In 2015, it introduced a policy to reform review and approval processes to encourage innovation in drugs and medicines devices. Additionally, it has focussed on the modernization of clinical trials, improving China’s position in global drug pipelines. 

Despite China’s increase in global share, the US still dominates with a 40% share. 

The 5EU (France, Germany, Italy, Spain, and the UK) accounts for 11%, a share that China has now nearly doubled.

There has been a surge in licensing deals between Chinese biotechs and Western ‘big pharma’ companies [1]. Since 2020, the number of such deals has increased by 280%.

One landmark 2025 deal was AstraZeneca’s US$5.2 billion agreement with CSPC Pharmaceuticals to research chronic disease drug candidates. 

Many of these have benefitted from ‘NewCo’ deal structure whereby, a new company or ‘NewCo’ in which companies and investors hold equity, replacing traditional a direct agreement between the developer and big pharma buyer.

Additionally, the country has developed a series of strong early-stage drug candidates. Across big pharma, transactions with China increased by 66% from US$16.6 billion in 2023 to US$41.5 billion in 2024.

Related articles
Chinese biosimilars go global: growth, partnerships, and challenges 

International biosimilars players expanding their presence in China

Reference
1. GaBI Online - Generics and Biosimilars Initiative. More China licence deals for US drug companies [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2026 Jan 7]. Available from: www.gabionline.net/reports/more-china-licence-deals-for-us-drug-companies

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