The Status Quo of TCM Trade in Services in China and Its Importance and Necessity of Development
0 Comment(s)
Print
E-mail China.org.cn, May 2, 2012
April 26, 2012
Ministry of Commerce of PRC & State Administration of Traditional Chinese Medicine of PRC
I. Status quo of TCM Trade in Services in China
Popularly speaking, TCM trade in services refers to the international trade in TCM from one country/region into any other. According to the definition of trade in services in General Agreement on Trade in Services (GATS), TCM trade in services also involves the following four modes of supply: cross-border supply, consumption abroad, commercial presence, movement of natural persons. The following are some of the examples: TCM long-distance-service from China to a person of another country, TCM service or education for a person from another country in China, TCM clinic in another country set up by a Chinese person or organization and TCM service supplied by a Chinese TCM doctor in another country.
1. China has already had favorable conditions in place to deepen the TCM trade in services.
First, the domestic and worldwide development of TCM has laid solid foundation for the development of TCM trade in services. The CPC and the government have attached great importance to the TCM work, and have greatly promoted its development by issuing the State Council's Opinions on Supporting and Promoting TCM Development and have made great use of TCM in the deepening of medical system reform. At present in China, there are all together over 36,000 TCM medical, educational and research institutions, over 803,000 licensed (assistant) TCM practitioners, over 35,000 TCM higher educational faculties and over 15,000 TCM research staff. The large scale of TCM service delivery network and human resources have offered significant backing and guarantee to large-scale, high-standard TCM trade in services. Meanwhile, with the prosperous development of TCM, international exchanges and cooperation have seen substantial increase, which has further promoted TCM international development. TCM has been spread to over 160 countries and regions, becoming an important health care alternative with increasing local needs. All these growths and achievements have laid a solid foundation for the development of TCM trade in services.
Second, improving international policy and legal environment has provided guarantee to the TCM trade in services. Since its accession to the WTO, China has accumulated great amount of experiences in the field of trade in services. As a WTO member, we can utilize the WTO platform, mechanism and rules to carry out TCM trade in services. The TCM acupuncture and moxibustion has been officially recognized by WHO, which has even released its technical guidance. It has also been included in the UNESCO's Representative List of Intangible Cultural Heritage of Humanity and acquired legal status in most countries. In addition, TCM service has identified legal status in Australia, Austria, Canada, Singapore, Vietnam, Thailand, UAE and South Africa etc. Some countries and regions have set up industry groups to conduct self-discipline management on TCM services, and have brought TCM therapies into medical insurance schemes to encourage its use.
2. China has accumulated practical experience in carrying out TCM trade in services.
Although the notion of TCM trade in services seems relatively novel in the TCM industry, China has in fact already carried and is still carrying out 4 modes of TCM trade in services and has accumulated a great deal of experience. 1) Consumption abroad. For years, a large number of tourists have come from outside China to receive TCM services and purchase TCM products. Such tours with TCM health care components have become a new highlight in the tourism industry in China. Major TCM colleges, some medical colleges and TCM research and practicing institutions have carried out TCM education or vocational trainings targeted at foreigners. The number of overseas students studying TCM has always taken up the biggest proportion among all overseas students studying sciences in China. 2) Cross-border supply. With the development of TCM long-distance-services such as long-distance-consultation and long-distance-education, an increasing number of overseas organizations and individuals are receiving TCM services provided from China in their own countries, and the level of such services is also scaling up. 3) Commercial presence. At present, an increasing number of Chinese organizations and individuals are delivering TCM medical or educational services by setting up branches or joint ventures, and are offering daily TCM services to the local people. 4) Movement of natural persons. Many Chinese TCM practitioners are also providing TCM services in other countries or regions through either overseas assignment by Chinese medical, educational or research institutions, or directly employment by foreign organizations.
3. Opportunities and challenges for China to develop TCM trade in services
TCM service has its unique advantages and promising future of international development. With the arrival of an aging society, together with the drastic changes in human disease spectrum, mode of medical science and health awareness, TCM service is enjoying more and more attention of states and popularity with the public due to its "relatively accurate efficacy, safe administration, low cost and flexible approach". In additional, China has drawn up the plan to promote the development of trade in services, which has provided TCM trade in services with a precious opportunity. In 2009, the State Council's Opinions on Supporting and Promoting TCM Development has indicated that "relevant policy framework needs to be improved to positively expand TCM trade in services. The Outline of the 12th Five-Year Plan for National Economic and Social Development released in 2011 clearly points out that "trade in services should be promoted" with a special focus on "export of new emerging services such as culture, TCM, software and IT services, trade flow, finance and insurance". The Outline of the 12th Five-Year Plan for the Development of Trade in Services has also identified TCM trade in services as a prioritized area with great potential. The Mid-Long Term Plan for International Exchange and Cooperation of Traditional Chinese Medicine, issued by the Ministry of Health and State Administration of Traditional Chinese Medicine, has listed the extending of TCM trade in services as one of the main tasks in the next 5 to 10 years.
Meanwhile, the TCM trade in services in China is still at the primary stage faced with problems and challenges. Firstly, the cultural difference between the East and West has impeded TCM scientific connotation from wide recognition and acceptance by the international community. Secondly, domestic institutions carrying out TCM trade in services need to build up their capacity and better understand international rules of trade in services to form an internationally renowned brand and TCM trade in services entities of certain scale and size. Thirdly, a supporting system for the promotion of TCM trade in services has not been set up, which calls for continuous improvement on aspects of legislation, regulations, industry, guiding capital, talents team cultivation and so on.
II. The importance and necessity to develop TCM trade in services
With the trans-border transit of service industry becoming a new trend in the economic globalization, trade in services has become a new engine driving the increase of world economy. TCM trade in services is a national health industry of great potential of originality and innovation that China has complete independent intellectual property right. Its development is, therefore, of great strategic significance.
TCM trade in service is an important component of the layout of Chinese trade in services. Based on the trend of international trade in services and the general planning and demands of the development of trade in services in China, we should regard TCM services as an important resource of the development of trade in services in China, try to explore its features and advantages, understand the needs in the international trade in services market, strengthen the organization, guidance, regulation of TCM trade in services, formulate policies on export expansion and promote the development of TCM trade in services. By so doing, we can promote the adjustment of the export of trade in services, foster Chinese service brands and effectively boost employment and economic growth.
TCM trade in services bears great importance for the promotion of TCM work. TCM trade in services across the world is conducive to quickly enhanced TCM service capacity, raised international competitiveness of TCM service products, expanded application scope, widened recognition of TCM services, and further international spread and development of TCM; it is conducive to showcasing and disseminating TCM theory and cultural connotations, promoting healthy way of life and ideology guided by TCM theory, facilitating the international spread of TCM culture and other forms of excellent traditional Chinese culture, boosting China's soft power and international influence; it is also conducive to the innovation of the modes of TCM international exchange and cooperation, the introduction of advanced research findings, management ideology and marketing tools, hence inspiring the potential and vitality of domestic TCM institutions, scaling up TCM services in both quantity and quality, facilitating international interaction and sharing of capital, technology and information in the TCM field, and promoting the scientific development of the TCM industry.
Go to Forum >>0 Comment(s)