Guideline issued promoting innovation in the biopharmaceutical sector

Eyeing to foster more shared opportunities in China's growing healthcare sector, the Ministry of Commerce issued new measures on Thursday to support Suzhou in Jiangsu province in further opening up to advancing biopharmaceutical innovations.

The measures were detailed in a guideline supporting the deep opening-up and innovation in the Suzhou Industrial Park, encouraging qualified institutions in the Suzhou section of the China (Jiangsu) Pilot Free Trade Zone to conduct clinical research in frontier medical fields such as immunotherapy, stem cell therapy and gene therapy. Additionally, clinical studies in compliance with relevant regulations are also encouraged, the guideline said.

This is the first time that foreign companies in the region are allowed to conduct biopharmaceutical research and provide financial support for such sectors, as they were previously restricted from participating in such areas since the implementation of the country's negative list for foreign investment 2021 edition.

The guideline is part of a broader strategy to further open-up China's frontier medical sectors, as Suzhou follows the first batch of the other four regions on the topic.

In September, the Ministry of Commerce and two other departments jointly announced a statement allowing foreign-funded enterprises to engage in the development of human stem cell, gene diagnosis and treatment technologies within designated zones in Beijing, Shanghai, Guangdong and Hainan provinces. The enterprises are authorized to develop, register and commercialize their products, which can be deployed nationwide upon regulatory approval.

The policy shift is already yielding tangible results. A slew of foreign-invested pharmaceutical companies, including Merck Life Science (Shanghai) Co Ltd and Phenotek Biotechnology (Shanghai) Co Ltd, have already updated their business licenses to initiate related operations in the country.

lijiaying@chinadaily.com.cn