Strategic Thinking on the Development of China's Bio-reagent Industry
As a developing country, especially based on the situation in China since the mid-to-late 1990s, the rapid advancement of modern science and technology worldwide has been remarkable. Companies like Sigma and Aldrich in the United States, as well as Wako Pure Chemicals in Japan, produce over ten thousand varieties of products, all provided in series for comprehensive supply. Since the 1980s, with the reform and opening-up policy and the influx of foreign technologies into China, several issues have arisen:
Issue One: Low R&D Investment
The state's investment in research and development is insufficient.
Issue Two: Fewer Varieties and Poor Compatibility
The number of reagent varieties supplied internationally continues to grow annually, expanding their application scope.
Issue Four: Low Quality Levels and Inconsistent Standards
China faces challenges in maintaining consistent quality standards across its products.
Issue Five: Outdated Production Technology and Slow Progress
China lags behind in adopting advanced production techniques, leading to slower advancements.
Issue Six: Insufficient Macro-management and Chaotic Markets
Domestic markets are relatively disordered due to inadequate macro-management.
Issue Seven: Small Production Scale and Lack of Economies of Scale
Currently, companies in various regions in China lack the capacity for large-scale production and new product development.
(1) Joint Ventures Among Major Reagent Companies
Major reagent companies should collaborate to form global and regional operating conglomerates. The largest such entity currently is the Sigma-Aldrich-Flucka-Supelco group. These mergers create complementary product lines and gradually dominate international markets.
(2) Changes in Molecular Reagent Production Processes
Production processes for fine chemical products mainly rely on chemical synthesis and purification. Natural product production primarily depends on separation and purification technologies.
(3) Expansion of Business and Service Scope
International companies have broadened their business and service offerings.
Analysis of Domestic Challenges, Opportunities, and Countermeasures
After China’s entry into the WTO, the domestic market further integrates with the international market, expanding the growth space for domestic companies. This facilitates attracting foreign technology and investment to strengthen local capabilities. However, the barriers for foreign companies entering the Chinese market have also decreased rapidly, intensifying competition. Domestic companies struggle to compete against international giants with strong technological and financial resources and urgently need to enhance their own strength.
Increasing Research Funding
Facing opportunities and challenges, the following suggestions are provided:
- Diversify funding channels and optimize product structures.
- Focus on improving product quality, strengthening standardization, quality supervision, and information network construction.
- Enhance competition through quality improvements; large companies should lead by example.
- Cultivate high-quality talent, including visionary decision-makers, information specialists who can capture emerging scientific and market trends, and professional talents capable of developing new reagents and optimizing production processes.
Accelerating Technological Progress
Joint Development: Collaboration between reagent companies, universities, and research institutes to select suitable Chinese partners, leveraging low-cost advantages and abundant labor resources to continue "bringing in" foreign capital, advanced technology, and modern management practices. This is an effective way to accelerate the development of the reagent industry and narrow the gap with foreign counterparts.
Strengthening and Expanding Business and Service Scope
In terms of product range, besides reagents, facing intensified industry competition and reduced average profits, it is necessary to adopt strategies that include integrating traditional skills with modern instruments to jointly develop products like Wuliangye liquor and establishing internationally aligned pesticide quality management systems.