CHINA: State Takes Control of Online Trade of Medicaments.
Taking into account the complexity of the health system of China, analysts assert that the development of e-commerce medicaments will take at least five years.
According to the authorities and representatives of the medical industry in China, online trade in medicines in the country will not soon reach a noticeable level of development. Recently, the authorities called on all companies, involved in the proliferation of medicaments over the Internet, to pass the licensing. If there is no state license, such sites will be closed.
According to statistics, currently in China there are many sites that are illegal trafficking in medicaments, which, in turn, may cause significant harm to consumers. Moreover, this situation has a negative impact on the business of legitimate sellers of medicaments.
By the way, the development of commerce greatly slowed the introduction of a visa, it is now much more difficult to transport goods across the border, as has become China customs check.
The Government intends to take an active part in the fight against illegal online trade. While not reported, what is the deadline for applying for a license. By law, companies, that operate in the pharmaceutical business, must have at least two specialists in the staff, certified by local authorities, and must make the statement of your business plan.
October 11, the National Office for the medicaments (State Drugs Administration, SDA) has named 16 of the first Internet companies that are authorized to sell drugs. Another eight companies have received such permission in the previous year.
Representatives of the health sector fully supports the initiative of the authorities. They believe that such approach would create a market of fair competition. However, some businessmen believe that the illegal sites, most of which belong to small companies or entrepreneurs who does not have a large impact on the market for pharmaceuticals. And despite all the efforts of the authorities, e-commerce in this sector can be the first profit of at least five years.
Last year, Chinese authorities have shut down virtually all health sites to protect consumers from counterfeit drugs. Companies can only deal with B2B-commerce in the medical sector. On the other hand, insurance companies, life insurance and health, have not the experience over control of online medical services. By virtue of the fact that the state ban is still in effect, insurance companies, announces that they will not cover the cost of medicaments purchased via the Internet.
According to some analysts, given the complexity of the Chinese health care system, need more time to e-commerce in this sector began to grow steadily. (e-commerce.ru, 19.10.2001).
As ecommerce grows, so will its impact on the overall economy. An even larger increase in economy wide productivity levels may result from productivity gains by business firms and companies not engaged in e-commerce as they respond to this new source of competition. Businesses recognizing this new opportunity and seeing the potential impact of e-commerce is important for policy makers, and forecasters as they project economic activity for the future.