The Chinese Government is expected to invest as much as $8.8 billion in Biotechnology by 2010, as per a research report. The report by RNCOS, “"Asia Pacific Biotechnology Market (2008-2012)," said the Chinese biotechnology market is expected to grow at a CAGR of over 23% during 2007-2012.
This will enable the China to represent around 25% of the Asia Pacific biotech market revenue by 2012. The report, by the New Delhi-India based market research and information analysis company RNCOS, has identified lower wages in China compared to other Asian-Pacific countries as the main reason for high growth in the country's biotechnology market. For instance, wages in China are 10% to 15% lower than that in India, one of the low-cost countries. Moreover, with hire and fire policy, the labor policies in China are more liberal, helping the biotech industry to increase productivity and reduce cost.
The Chinese government strongly supports its biotech industry and has been aggressively investing in the industry to foster growth, says the report. Apparently, the annual investments by the government surged at a CAGR of 86.12% during 2001-2005 to $1.2 billion in 2005 from $100 million in 2001. In addition, we expect that the investment will rise to $8.8 billion by the end of 2010 as the government intends to make China one of the leading biotech markets in the world.