China is the world’s largest exporter and importer of APIs. Our country’s APIs occupy an irreplaceable position in the global market. Among them, the bulk of APIs are mainly exported. The production of APIs has brought economic benefits to China, but at the same time, the environmental problems caused by the production process cannot be ignored.

In recent years, “green” and “environmental protection” have become hot words in the field of APIs in our country. Since 2012, government departments have put forward structural adjustment requirements for the pharmaceutical industry to reduce energy consumption and pollution, and support the innovation of environmental protection technologies in the production of APIs. On January 2, 2020, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the National Health Commission, and the National Medical Products Administration jointly issued the “Guiding Opinions on Promoting the Green Development of the API Industry“, drawing a blueprint for the green development of the API industry — Realize the green upgrade of the API industry through technological innovation and promotion of green standards.

The promulgation of the guiding opinions will increase the environmental protection expenditures of API manufacturers, forcing some small production capacities to withdraw from the market, thereby increasing industry concentration. This is an opportunity, and also a challenge for API manufacturers. Only by increasing investment in environmental protection, upgrading industries, improving processes, and enhancing pollution treatment capabilities can companies seize structural opportunities and achieve sustainable development.