China's pharma revolution from follower to global player

In July 2026, China approved a novel drug targeting a key brain receptor linked to narcolepsy type 1, a chronic neurological sleep disorder defined by excessive daytime sleepiness and sudden muscle weakness. The drug, developed for adolescents aged 16 and older and adults, became available in China first.

It marked a historic milestone: China is no longer a follower in global drug development; it's becoming a major contributor. 

A regulatory reset

China's regulatory environment has been steadily aligning with global standards, and the pipeline is growing.

In 2025, China approved 76 innovative drugs and 76 innovative medical devices – both record highs, according to the National Medical Products Administration (NMPA). By year-end, 4,751 new drugs were in development, accounting for 33.7% of the global total – the largest share of any country.

The shift extends beyond R&D to affordability. Since 2018, 949 medicines have been added to the national reimbursement list, including 199 innovative drugs, according to information released at a State Council Information Office press conference last week. This means life-saving treatments are now more accessible.

From market to innovation hub

China has also streamlined approvals for drugs that address urgent clinical needs, allowing some to move from application to approval in months. The NMPA has also granted six years of data protection for eligible medicines, giving developers more incentive to innovate.

Multinational pharmaceutical firms are taking notice. They're increasingly incorporating Chinese hospitals into early-stage clinical research, even setting up R&D operations in China.

The numbers reflect the trend. According to China Media Group (CMG), China registered 410 international clinical trials in 2025, up more than 20% than the previous year and roughly double the 2020 figure.

China is transforming from a market where innovative drugs are eventually introduced into a place where they are discovered, tested and developed from the start.

The ambition, according to Yang Ting, director general of the Department of Drug Registration at the NMPA, is not just to bring more innovative medicines into China, but to create a new model where first-in-class therapies can be developed and introduced as part of global programs. 

The significance goes beyond China. For BRICS countries and the wider Global South, China's rise as a pharmaceutical innovation hub could open new possibilities for cooperation, bringing the world's newest treatments closer to every patient.