Jinan Zhuocheng Bio-Tech Co., Ltd.

From October 6 to 8, 2026, the 36th Convention on Pharmaceutical Ingredients Europe (CPHI Milan 2026) took place at Fiera Milano in Italy. More than 62,000 industry professionals from 166 countries and over 2,900 exhibitors gathered to discuss key developments shaping the global pharmaceutical industry, including artificial intelligence, supply chain resilience, biomanufacturing, and sustainability.

For China’s active pharmaceutical ingredient (API) industry, CPHI Milan was more than a window into global market trends. It also served as a strategic platform connecting Chinese manufacturers with international buyers, technology providers, and regulatory resources.

As international trade conditions evolve, supply chains are being restructured and competition intensifies, China’s API exports are gradually moving beyond traditional advantages in cost and production scale. Technological innovation, product quality, regulatory compliance, and comprehensive service capabilities are becoming increasingly important determinants of competitiveness.

Against this backdrop, professional trade shows are taking on a broader role. They are no longer simply venues for product promotion and order acquisition, but important platforms through which companies can strengthen international partnerships and integrate more deeply into global pharmaceutical supply chains.

1. A Moderate Recovery in Exports: China’s API Industry Enters a Period of Structural Adjustment

China has become one of the world’s leading producers and exporters of APIs, playing a significant role in the global pharmaceutical supply chain. According to relevant information released by China’s National Development and Reform Commission, China accounts for approximately one-quarter of global API trade by export value. In 2024, above-designated-size chemical API manufacturers in China generated revenue of RMB 578.3 billion, representing approximately 35.5% of the global market.

However, the industry’s scale advantage does not guarantee sustainable growth under the traditional export model. In recent years, international competition, fluctuations in raw material and energy costs, exchange rate movements, and changes in trade policies have continued to put pressure on manufacturers’ profitability.

According to customs data, China’s exports of APIs and intermediates reached USD 42.87 billion in 2025, down 0.3% year on year. The industry increasingly faced a combination of relatively stable export volumes, slower growth, and narrowing profit margins.

Export performance improved moderately in the first half of 2026. China’s API and intermediate exports reached USD 23.44 billion, up 5.9% year on year, while export volumes increased by 11.1%, significantly exceeding the 2.2% growth recorded for the whole of 2025.

Nevertheless, overall export growth does not fully reflect changes in the industry’s competitive position. Performance is becoming increasingly differentiated across product categories.

Traditional bulk APIs, including vitamins and penicillin products, continue to face intense price competition. Some categories have experienced volume growth alongside downward pressure on prices. By contrast, higher-barrier products, including GLP-1-related peptides and hormone APIs, have demonstrated stronger performance. In the first half of 2026, China’s exports of hormone APIs and intermediates reached USD 1.3 billion, an increase of 51.3% year on year.

This divergence highlights a structural transition within China’s API industry. Traditional products need to improve cost efficiency and supply performance, while higher-value products depend increasingly on technological expertise, robust quality systems, and international registration capabilities.

Going forward, competitive advantage will depend not only on production scale and pricing, but also on product portfolio management, technical capabilities, regulatory readiness, and reliable long-term supply. Connecting domestic manufacturing resources with evolving global demand has therefore become an important priority for the industry.

2. Supply Chain Resilience Takes Priority: Why Trade Shows Are Becoming More Valuable

Supply chain resilience was one of the key themes at CPHI Milan 2026.

Changes in international trade policies, regional manufacturing strategies, and geopolitical risks have prompted pharmaceutical companies worldwide to reassess supply chain stability. Policy discussions and measures concerning US pharmaceutical import tariffs in early 2025 further intensified industry attention to sourcing costs, supplier concentration, and long-term supply security.

API supply chains are highly specialized and subject to stringent regulatory requirements. Changing suppliers can involve quality audits, technical assessments, registration updates, process validation, and regulatory approvals. Supply chain adjustments are therefore not simply a matter of transferring procurement to another source; they require time, resources, and systematic evaluation.

As a result, pharmaceutical procurement priorities are evolving. Price remains important, but consistent quality, reliable supply, regulatory compliance, and risk management capabilities are becoming increasingly significant factors in supplier selection.

CPHI’s exhibition strategy reflects this shift. Over the years, the platform has expanded from a focus on pharmaceutical ingredients to a broader ecosystem covering manufacturing equipment, packaging, logistics, and related technologies. At CPHI Milan 2026, four new dedicated areas were introduced: AI & Tech, Cold Chain & Logistics, Labeling Technology, and Contamination Control, further extending the exhibition’s technical scope.

The AI & Tech area was particularly noteworthy. As artificial intelligence finds applications in manufacturing optimization, quality management, regulatory affairs, and data analysis, pharmaceutical companies are increasingly looking for practical ways to integrate digital technologies into their operations.

Caglayan, Executive Vice President of Informa Markets’ Pharma Portfolio, noted that the pharmaceutical industry is highly innovative but also heavily regulated. Integrating AI into the future of pharmaceuticals while ensuring that it works within regulatory frameworks is therefore an important challenge for the industry.

For Chinese API manufacturers, digitalization offers more than production efficiency gains. It can also strengthen quality management, improve data traceability, and support international customer audits and regulatory compliance.

The value of professional trade shows is consequently expanding beyond product displays and procurement meetings. They are becoming platforms for technology exchange, supply chain collaboration, and industrial capability development. Chinese manufacturers can use these events not only to understand international demand, but also to connect with digital solution providers, logistics companies, and other partners across the pharmaceutical value chain.

3. Chinese Companies Move from Product Exports to Integrated Global Operations

The participation of Chinese companies at CPHI Milan illustrates how China’s pharmaceutical industry is broadening its approach to international expansion.

Traditionally, many Chinese API manufacturers built their overseas businesses around product exports, relying on cost advantages, manufacturing scale, and supply efficiency. As international customers place greater emphasis on quality systems, registration compliance, technical support, and supply reliability, more companies are extending their capabilities into integrated API and formulation operations, complex formulations, and global business development.

Hepalink and its subsidiary Techdow Pharma provide an example of this transition. In April 2026, Techdow Pharma’s prefilled syringe manufacturing project in Pingshan, Shenzhen, received an award in the Innovation–Novel Technology category of the International Society for Pharmaceutical Engineering’s Facility of the Year Awards (FOYA). According to the relevant project information, it was the first domestically constructed project by a Chinese pharmaceutical company to receive this distinction in the award’s history.

The facility has a designed annual production capacity of 330 million prefilled syringes and incorporates technologies including 5G edge computing, AI-powered inspection, digital twins, and automated logistics. Combined with the capacity of its Nanshan facility, Hepalink’s total annual prefilled syringe production capacity reaches 550 million units.

In international markets, Hepalink has continued to expand its presence in Europe with its enoxaparin sodium formulation, which received marketing authorization from the European Medicines Agency in 2016. By June 2026, cumulative sales in Europe had approached 900 million units, with the product holding a leading market position. This case demonstrates how manufacturing capabilities, quality systems, and international market access experience can combine to support sustainable global competitiveness.

Jemincare presented a portfolio covering nephrology, oncology, and respiratory medicine, alongside its proprietary complex liposomal formulations. The company held discussions with more than 100 pharmaceutical companies from Europe, the Middle East, Southeast Asia, and Latin America, with several potential cooperation opportunities emerging from these exchanges. By showcasing a broader product portfolio and R&D capabilities, the company was able to demonstrate its technical strengths and potential for international collaboration.

Lianhuan Pharmaceutical has outlined an internationalization strategy built on its API business, with formulations serving as a key area for further development. While strengthening the market positions of established products such as hydrocortisone and levonorgestrel, the company is also pursuing international opportunities for formulations including abiraterone acetate tablets and tadalafil tablets. This reflects a broader shift from supplying individual APIs toward providing integrated API and formulation capabilities.

In higher-barrier product segments, Sinopep is expanding overseas business with peptide APIs such as semaglutide and liraglutide. Hao Yuan Chemexpress, meanwhile, is developing capabilities in complex molecules, including antibody-drug conjugates (ADCs), peptides, and oligonucleotides, positioning itself within the global innovative drug development supply chain.

These examples illustrate a broader change in China’s pharmaceutical internationalization strategy. Companies are increasingly seeking to export not only products, but also their technological expertise, quality systems, regulatory capabilities, and manufacturing services.

Regional industrial clusters are also becoming an important vehicle for international engagement. For example, Haikou National High-Tech Industrial Development Zone organized a group of companies, including Hainan Haiyao, Huayi Taikang, Wante Pharmaceutical, Hailing Pharmaceutical, and Xiuzheng Pharmaceutical, to participate in the exhibition. Huzhou Prospect Pharmaceutical also presented a range of pharmaceutical excipients and key API-related products.

From individual technological achievements to coordinated industrial cluster participation, China’s pharmaceutical industry is exploring more diverse models of global expansion. For overseas buyers, this approach provides a broader view of not only individual products, but also manufacturing capacity, supporting resources, and long-term supply potential.

4. From Milan to Shanghai and Wuhan: Building a Global Trade Show Network

The impact of CPHI Milan extends well beyond its three-day exhibition. Viewed within the broader international pharmaceutical exhibition landscape, trade shows in China and overseas are jointly creating important channels for Chinese API manufacturers to develop international markets.

From June 16 to 18, 2026, the 24th CPHI China was held in Shanghai under the theme “Gathering Strength, Creating New Opportunities.” The exhibition covered more than 250,000 square meters, brought together over 3,700 domestic and international exhibitors, and attracted more than 110,000 professional visits from over 180 countries and regions. In addition to its 13 core exhibition areas, the event featured six specialized themed areas, including a zone dedicated to cutting-edge technologies and innovative therapies. More than 100 forums and related activities were held alongside the exhibition.

The 95th API China exhibition, covering pharmaceutical ingredients, intermediates, packaging, and equipment, is scheduled to take place at Wuhan International Expo Center from November 11 to 13, 2026. It will provide another platform for product presentation, procurement discussions, and industry exchange.

Together, exhibitions in Shanghai and Wuhan complement international events such as CPHI Milan. Domestic exhibitions allow overseas buyers to evaluate Chinese suppliers, products, and supporting industrial capabilities in one place. Overseas exhibitions, in turn, enable Chinese companies to engage directly with target-market customers and gain a clearer understanding of local procurement requirements and competitive dynamics.

Meanwhile, the China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE) has continued to organize international exhibitions and business exchange activities across a growing range of markets. From Frankfurt and Milan to Cairo, Dhaka, and regional exhibitions in Latin America and Southeast Asia, these events create additional opportunities for Chinese companies to connect with buyers across different regions.

This expanding exhibition network offers a more proactive approach to market development. For companies targeting regulated markets in Europe and North America, international exhibitions provide opportunities to engage with customers that place strong emphasis on quality and registration requirements. For those expanding into Southeast Asia, South Asia, the Middle East, Africa, and Latin America, regional exhibitions can help identify local purchasing patterns, regulatory expectations, and distribution structures.

Importantly, the benefits of exhibitions extend beyond individual transactions.

Established in 1989, CCCMHPIE is a national trade organization under China’s Ministry of Commerce. It has approximately 3,000 member companies and regularly organizes overseas exhibition projects and international business activities. Beyond exhibitions, the organization provides services related to industry data and risk alerts, international buyer-supplier matching, regulatory policy guidance, trade dispute response, and international public procurement.

In trade dispute matters, for example, relevant support can help companies understand and respond to cases involving issues such as vitamin C antitrust litigation and anti-dumping investigations concerning ursodeoxycholic acid. In international public procurement, matchmaking and guidance can help companies understand the procurement mechanisms and participation requirements of international organizations, including the United Nations. Industry publications such as the Blue Book on the Internationalization of China’s Pharmaceutical Industry can also provide useful references for companies developing international strategies.

For API manufacturers seeking to enter regulated markets in Europe and North America, customer acquisition is only one part of international business development. Registration requirements, trade policies, quality audits, contract performance, and market access all require sustained investment. The combination of trade shows and specialized industry services can help companies obtain market intelligence, identify risks, and establish international partnerships more systematically.

At a broader level, the expansion of this exhibition network aligns with the upgrading of China’s pharmaceutical industry. As international collaboration in innovative medicines deepens, the industry’s global expansion is extending beyond APIs and intermediates into formulations, technical services, and other higher-value segments. Trade shows provide direct opportunities to present products, technologies, registration capabilities, and partnership resources, helping facilitate this transition.

Conclusion: Trade Shows Are More Than Sales Channels—They Connect Companies with Industrial Upgrading

Looking back at CPHI Milan 2026 and ahead to exhibitions in Shanghai and Wuhan, a clearer picture is emerging of how China’s API industry is approaching international expansion.

Global buyers can assess suppliers in one place, companies can compare technical solutions and exchange quality and compliance experience, and manufacturers can adjust their product portfolios and international strategies based on market feedback. The role of trade shows is expanding from traditional business matchmaking to broader collaboration across the pharmaceutical value chain, technology exchange, and global market development.

For Chinese API manufacturers, future competitiveness will depend not only on pricing and production capacity, but also on technological innovation, quality systems, regulatory compliance, reliable supply, and localized services.

As export competition shifts from price to integrated capabilities, trade shows provide an important platform connecting products, technology, registration, capital, and markets. Through coordinated participation in domestic and international exhibitions, together with sustained collaboration with industry organizations, technical service providers, and overseas partners, Chinese API manufacturers can strengthen their ability to respond to international market requirements and move from product suppliers toward comprehensive solution partners.

The transition from product exports to integrated global operations will not be driven by trade shows alone. However, these events remain valuable entry points for understanding global markets, building international relationships, and identifying new business opportunities. For China’s API industry, strengthening this international engagement network can support deeper integration into global pharmaceutical supply chains and the development of more sustainable competitive advantages.