China is currently the world's largest producer of API, producing more than 1500 kinds of API and intermediates. According to statistics, the output of raw materials in China reached 3 million 289 thousand tons in 2016, and the manufacturing enterprises of raw materials showed good profitability.

However, under the influence of strict environmental protection and the increasing cost , more and more prices of API varieties have risen in 2016, including vitamin A, vitamin E, calcium pantothenate, heparin and other raw materials.

Nowadays, with the gradual enhancement of people's awareness of environmental protection, the state pays more and more attention to environmental protection. In recent years, policies on environmental protection have been speeded up. For example, ‘the plan for water pollution prevention and control of key basins’ in 2017 and‘the environmental protection tax law of the People's Republic of China’ in 2016.

The increase of environmental pressure has promoted the environmental protection expenditure of pharmaceutical manufacturing enterprises and forced some small capacity to withdraw from the market. This has promoted the concentration of the industry, which is both an opportunity and a challenge for the API production enterprises.