The Chinese government continues to restrict the domestic production of vitamin C and penicillin ingredients, according to wide-ranging draft industry restructuring guidelines released by the National Development and Reform Commission (NDRC)

The Chinese government continues to restrict the domestic production of vitamin C and penicillin ingredients, according to wide-ranging draft industry restructuring guidelines released by the National Development and Reform Commission. The NDRC released the draft restructuring guidelines in order to solicit feedback from local and provincial-level governments. Through the planned restructuring, the NDRC aims encourage the development and adoption of new technologies, and discourage polluting projects as well as those that utilize outdated or superseded technologies.

In the guidelines, in regards to the domestic pharmaceutical industry, the NDRC flagged the production of vitamin C ingredients and penicillin ingredients for restriction, putting such activities in the same category they did two years ago in the previous lot of guidelines.The previous set of guidelines were released in December 2005, and have played an active role in improving the country's industrial structure, the NDRC said this week.

Vitamin C and penicillin are two key active pharmaceutical ingredients for Chinese pharmaceutical companies, as they play a major role in the global market for each ingredient. China's annual penicillin G production capacity currently stands around 100,000 tons, approximately double the 50,000 tons of total annual global demand. At the same time, China's top four vitamin C manufacturers produce over 60 percent of all global output.