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Lawmakers Call for Harder Crackdown on Drug Counterfeiters
BEIJING, March 12 2002 [XINHUA]
China's law enforcement agencies cracked some 480,000 cases of manufacturing and marketing of counterfeit drugs with a market value of 470 million yuan (56.8 million U.S. dollars) last year.
More than 1,300 manufacturers were forced to halt production for overhauling to meet the national quality standard, and more than 8,600 illegal drug distributors were permanently closed down, China Daily reported Tuesday.
Zheng Xiaoyu, director of the State Drug Administration, disclosed the statistics during a group discussion at the ongoing session of the Ninth National People's Congress (NPC).
The government has pledged to reinforce its zero tolerance campaign on unqualified or illegal medicine manufacturers, and will "be very cautious over the establishment of new plants" in a bid to regulate the market, the newspaper quoted Zheng as saying.
His release echoes the views of many lawmakers who have called on government officials at all levels to be tougher on the counterfeit medicine makers. They explain that fake drugs pose potentially serious risks to people's health.
" The State Council has paid great attention to the issue of counterfeit drugs in the market. We have reformed our supervision system to fortify control over the market since last year," Zheng said, adding that the administration will shut down about half of existing health care product manufacturers this year, only 1,300 will be left.
" These manufacturers, which have sneaked into the market due to slack government control, fail to meet the national quality standard. They must be closed to prevent rampant counterfeits and unqualified products from going on sale to the public," he said.
Song Yadong, an NPC deputy from Northeast China's Heilongjiang Province, urged the government to enforce severe punishment on counterfeit drug makers as a deterrent. "We suffer a shortage of legal instruments to penalize such illegalities, and our punishment is too weak to be effective," said Song, who is also the deputy director of the Drug Administration of Suihua City of the province.
A general manager of a pharmaceutical joint-venture said that bogus medicines not only pose harm to public health, but also affect the dynamic development of the pharmaceutical industry.
" We have spent several million yuan a year to trace and help local government crack down on the counterfeit. The direct losses we suffer from the counterfeit have reached up to 10 million yuan a year (1.2 million U.S. dollars), or one percent of our annual revenue," he said on condition of anonymity.
He said the government must be tough in the crackdown, especially because China has joined the World Trade Organization ( WTO). The manager said the work is even harder when some of the counterfeit makers are protected by local authorities.
" Our supervision network has not been completed, covering only 84 percent of the cities, and 73 percent of towns and counties," said Zheng. "Also we are suffering from insufficient funds to launch large-scale spot inspections of medicine factories. We need help from local governments."


China warns of health threat from counterfeit drugs
BEIJING, March 12, 2002 Agence France Presse
China's top pharmaceutical official has warned the production of fake drugs has taken on huge proportions and now poses a serious threat to public health, state media said Tuesday.
The problem is so serious that the government intends to shut down half the companies in China's healthcare products market, the China Daily reported.
Police last year cracked 480,000 cases of firms making and selling counterfeit drugs, valued at 470 million yuan (57 million dollars), the paper cited Zheng Xiaoyu, head of the State Drug Administration, as saying.
" These manufacturers, who have sneaked into the market due to slack government control, fail to meet the national quality standard," Zheng told lawmakers at the annual session of parliament in Beijing.
" They must be closed to prevent rampant counterfeits and unqualified products from going on sale to the public," he said.
The government intends to back its words with stern action and plans to shut down 1,300 companies producing healthcare products this year, half of the entire industry, the paper said.
But the paper indicated it could be tough to fulfill that pledge, as Zheng's administration lacks sufficient funding, making it impossible to launch inspections everywhere it wants to.
Even more important, many pharmaceutical companies are protected by local officials who rely on the businesses for tax income and also appreciate the jobs they create for laid-off workers, the paper said.
Reports have emerged occasionally in China's official media showing the extent of the problem with fake drugs.
In October, officials in eastern China seized 240,000 fake Viagra pills in what was described as Asia's biggest haul of counterfeit versions of the anti-impotence drug.