A Project Funded by the European Commission Directorate General Trade

Implemented by:

PLEASE RETURN THE COMPLETED QUESTIONNAIRE TO: stephan@developmentsolutions.com.cn

PHARMACEUTICALS INDUSTRY QUESTIONAIRRE

SECTION 1: SECTOR OVERVIEW
WFOE MNC: JV 1.1 Please tick box as appropriate: SME: JV
(SME: less than 250 employees worldwide)

WFOE

1.3 For how many years has your company engaged in China related business activities (please tick box)?
More than 10 Between 5-10 1 to 5 Less than 1 year/ intending to enter China

1.4 Please specify which activities you have in China and for how many years (please tick box). a) Sales Activities More than 10 b) Production Activities More than 10 c) R&D Activities More than 10 Between 5-10 Less 5 No R&D in China Between 5-10 Less 5 No Production in China Between 5-10 Less 5 No Sales in China

A Project Funded by the European Commission Directorate General Trade

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1.5 Please describe the nature of your engagement in China: Tick one or more EU Exports to China: China-based production for exports to Europe other destinations China-based production for local market Sourcing Other, please specify: : :

: :

1.6 Which market segments does your China business operate in? I) Your companies segments (as used in annual reports, external presentations, etc.) Name of SubSector 1 Name of Subsector 2 Name of Subsector 3, etc.

II) Ethicals versus Generics (please specify percentage of sales in China (rough estimation)) Ethicals Generics III) Therapeutic Areas (for example: respiratory system, cardiovascular, central nervous system, etc.) (please specify percentage of sales in China (rough estimation)) Therapeutic Area A Therapeutic Area B Therapeutic Area C [%] [%] [%] [%] [%] [%]

A Project Funded by the European Commission Directorate General Trade

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SECTION 2: CHINA MARKET OPPORTUNITIES

Please answer the following questions which place emphasis on the current situation and mid-term future outlook.
Note: 1 = little importance, 3 = moderate importance 5 = utmost importance (please mark as appropriate)

2.1. How important is the China market for your business? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

2.2. What is the percentage of your companys turnover in China today compared to overall/ global turnover in sales and market share? i) ii) Sales: Market share:

2.3. Over the next 5 years, how do you expect business opportunities to evolve in the pharmaceuticals sector in China? How will this likely impact on your sales/ market share figures? Explanation:

i) Sales: ii) Market share:

2.4. How important is China as a production site? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

2.5. How important is China as an R&D site? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

A Project Funded by the European Commission Directorate General Trade

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2.6. How much of a problem would you rate market access and other commercial practices by China? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

2.7. What are the main current obstacles preventing you from expanding further in the Chinese market? Please list in terms of priority (e.g. market access constraints, IP protection, Chinese standards/ operating practices, etc.).

2.8. How will this situation likely evolve during the next 5 years?

2.9. What are the quantitative costs or impacts resulting from these obstacles on your business today? These can be indicated as a percentage of turnover, revenues, etc. Please specify.

2.10.

How is this situation likely to evolve in the next 5 years?

2.11. How does the Pharmaceutical sector plan to maximise the opportunities brought about by the Chinese market (e.g. outsourcing and exporting to home markets/ investment/ acquisition etc.)?

A Project Funded by the European Commission Directorate General Trade

Implemented by:

2.12. Chinas 11th 5-year programme (2006 to 2011) sets ambitious targets and priorities for rural development, environmental protection (rural and urban), energy efficiency (rural and urban context) as well as the need for a home grown innovation society, affecting all sectors. This direction would represent a major step change in Chinas approach to sustainable development. a. Please consider how the direction of Chinas sustainable development as described above provides opportunities and challenges within your own sector and business units (e.g. new markets, new investment opportunities, partnerships, etc.)?

b. What will likely be the challenges and constraints of realising these opportunities?

SECTION 3 CHINESE SECTOR COMPETITION

Note: 1 = little importance, 3 = moderate importance 5 = utmost importance (please mark as appropriate)

3.1. How significant is the competitive threat of Chinese enterprises operating in your sector in the China market? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

3.2. Please describe the nature of this threat. Include the role of SOEs in your description. How is the threat evolving?

3.3. What are the main advantages your company has in China compared to Chinese competitors? Please list in terms of priority (e.g. Product/

A Project Funded by the European Commission Directorate General Trade

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innovation, brand, service/ maintenance, people etc.).

3.4. How significant is the competitive threat of Chinese enterprises operating in your sector in the US market? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

3.5. Please describe the nature of this threat and its likely future evolution (5yrs)?

3.6. How significant is the competitive threat of Chinese enterprises operating in your sector in the ASEAN market? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

3.7. Please describe the nature of this threat and its likely future evolution (5yrs)?

3.8. To what extent does the infringement on IPR affect your business with China? 1 Today 2 3 4 5 1 2 3 4 5

In 5 years

3.9. How will this situation likely evolve in the next 5 years?

3.10.What are the overall efforts undertaken in your industrys field of

A Project Funded by the European Commission Directorate General Trade

Implemented by:

operation to maintain competitiveness vis--vis China?

A Project Funded by the European Commission Directorate General Trade

Implemented by:

3.11.What is your priority in dealing with the challenge posed by the emergence of China/ Chinese industry as competitors? Please list and specify (e.g. improving your competitiveness, improving market access, seeking improvement in overall issues of commercial transparency).

3.12.Please highlight ideas for acceptable investment scenarios in China outside those currently permitted by the Chinese government? Please be creative in considering EU-China win-win approaches to investment and cooperation.