by LI Kewen
China has emerged as the world's leader in clinical trials, underlining the rapid rise of its innovative drug industry as multinationals increasingly look to Chinese companies for partnerships.
At WuXi Biologics' first CRDMO+ Open Day - an industry event showcasing its contract research and manufacturing services - CEO CHEN Zhisheng cited data from JP Morgan and IQVIA showing that China accounted for 30% of global clinical trials in 2024, up 66% from a year earlier. Consultancy GlobalData reported that more than 7,100 trials were registered on the World Health Organization's platform, compared with about 6,000 in the US.
The rise follows nearly a decade of regulatory and industry change. Regulatory reforms in 2015 and the 2018 approval of China's first domestic PD-1 therapy spurred innovation, but funding cooled after 2021. Globalization is now reshaping the sector, pushing firms to steam pipelines, adjust business models and diversify financing. FU Tian, co-founder of Angkwo Pharma, said Chinese firms have shifted from me-too projects to leaner portfolios with global potential. Business models now mirror the US biotech path, with startups focusing on R&D and monetizing through licensing.
Chen told Jiemian News that overseas buyers once demanded discounts on Chinese drugs due to clinical data concerns, but multinationals are now seeking partnerships at market prices.
Cross-border deals are booming. In the first half of 2025, Chinese drugmakers signed over 50 agreements worth more than $60 billion, according to JP Morgan and IQVIA. Since 2023, licensing income has exceeded IPO proceeds, making deal-making the sector's main source of funding.
China's speed and cost edge is another driver. Chen said local firms can develop complex therapies such as antibody-drug conjugates in half the time and at as little as one-fifth the cost of US peers. A crowded field, strong R&D and ample capital have also propelled high-potential projects, giving Chinese firms an early lead in cutting-edge therapies.
Concerns remain, with some firms seen as selling assets too early. Chen said a project worth $50 million today could reach $200 million with sustained investment. Fu noted the NewCo model - creating overseas entities - helps firms retain long-term value and has become a leading strategy for Chinese biotechs since mid-2024.
Despite concerns, industry leaders say globalization is now essential. Licensing, partnerships and overseas ventures are generating revenue and cementing China's drugmakers as global contenders.