Traditional medicine still plays a significant role in the Chinese healthcare system yet the past fifteen years have seen rapid growth in the biopharmaceutical industry, both for the production of generic medicines and the development of new drug candidates. Indeed, in 2003 China became the first country to approve a gene therapy reagent, Gendicine for treatment of squamous cell carcinoma of the head and neck. More recent news suggests that China’s SFDA is close to approving the world’s first oncolytic virus for cancer, seemingly placing it to rival the US in new drug development.A rich history in natural remedies and a growing biopharmaceutical sector keen to identify and harness the potential of novel therapeutic compounds is making China a powerful force in the global pharmaceutical market. A number of large manufacturing firms are already seeking to gain a foothold in China and such investment offers to solidify the Chinese position and provide a base for expansion of both research and marketing capacity. It seems increasingly likely that the Chinese biopharmaceutical industry will soon be challenging those of the US and Europe for a share of the global market.