Now, China’s pharmaceutical industry is growing into a new frontier: Seeking approvals for its domestic drugs outside of China, especially in the EU, US, and Australia.
“What’s happening in China is a result of investment by the Chinese government,” explains Daphne Smyth, a global regulatory affairs expert who has served in various regulatory leadership roles over nearly three decades at Bayer, Labopharm Europe, ICON, and most recently at the scientific consultancy and CRO Veristat, in the Q&A below. “It has actively supported drug development, sciences, biotechnology, oncology, and medical development.”
“The question that interests me most is: What comes next?”
Global Forum: China is starting to branch outside its borders by seeking approvals in the EU and US for its own novel therapeutics. What is happening inside and outside China to drive this expansion?
Daphne Smyth: China’s expansion is becoming ever more apparent—and receiving more media attention. A few CROs have been actively working with Chinese pharma companies for several years now and in response to a notable increase in inquiries and interest in investigating approvals for their assets outside of China.
I’ve been in the industry for 35 years, so I led local APAC teams in previous lives. But I’d never been at the receiving end of China-developed products coming out of China. Initially, I assumed it was a bit of a unicorn, but this business has grown, and China clients’ interest in evaluation of potential approval paths for their drugs outside of China has grown.
What’s happening in China is a result of investment by the Chinese government. It has actively supported drug development, sciences, biotechnology, oncology, and medical development.
For example, a Chinese government five-year plan that completed in 2025 but contains long-term objectives to 2035 resulted in the establishment of massive biopharmaceutical hubs. And not only in places like Shanghai but also in neighboring cities. BioChina 2026 was held in Suzhou, which is about 40 minutes from Shanghai, and is a purpose-built science hub city with research, development, manufacturing, hospitals, universities, schools, and housing, all in one integrated environment.
We have heard there are many of these all over China; we saw for ourselves the development in Shanghai and in Suzhou for the BioChina 2026 event. Before I visited China there, I had not quite grasped the extent of the development.
Global Forum: Does this expansion seem to target any specific therapeutic areas, modalities, or patients?
Daphne Smyth: Oncology products are the most prominent with Chinese companies that have fully developed their products in China, perhaps have them already on the market, and are looking to get the most out of this development effort by marketing them in other countries such as in the US, Australia, and Europe.
For instance, one sponsor company worked to obtain market approval for a PD-L1 in the EU and UK. The development happened in China, and companies have been getting their approvals with varying levels of additional data required. In oncology, it’s usual to have patient data in early phases and if some of this patient data was from non-Chinese patients, that obviously helps the approval chances outside of China.
Now, sponsors from other therapeutic areas are inquiring about this expansion, as well. Sponsors with immunology and rheumatology products fully developed in China are now looking to take them outside of the country. Chinese companies are also looking to integrate early development outside of China and hoping to conduct their phase 1 or phase 2 study in the US or Australia. These sponsors, too, are seeking advice on what type of data they need and when. Two very interesting developments.
Global Forum: Is Australia a good geographic or clinical fit?
Daphne Smyth: Yes. Access to clinical trials in Australia is traditionally fast and from a location perspective suitable, so there is a lot of Chinese company development already in Australia. However, to get approval outside of China, these sponsors must test their products not just in the Australian Chinese population but also in the Caucasian Australian population.
Global Forum: What are some of the other challenges that these Chinese sponsors face in this outgrowth process?
Daphne Smyth: Data is the main challenge. European and North American regulatory agencies require the clinical trial population to reflect the local market; i.e., to be reflective of a European or a US patient population. That’s the framework under which we all work. So, either this data needs to be presented as part of the regulatory package or there needs to be strong scientific justification as to why data from a non-European or non-US population is comparable to the data generated from local medical practice or standard of care. Some companies have included non-Chinese patients, especially in early oncology studies, and some have done PK bridging to show comparability across patient populations.
The other challenge is the regulatory environment. The US FDA is familiar to Chinese companies because that regulatory system is similar to China’s. The Chinese agency used to be called the Chinese FDA (it’s now the National Medical Products Administration, or NMPA), and they also have an Investigational New Drug (IND) application and review system, and their agency and requirements setup is quite similar—or at least transferable.
European regulatory requirements can be complex for companies based outside the EU, with the multitude of agencies, committees, languages, and local requirements. I grew up with the first iteration of the European Medicines Agency (EMA). But still, every time, you need to double-check which committee is responsible. People may say, “Oh, we just ask the agency,” but the EMA is one organization, with many committees, and the evaluation is done by 27 Member States Agencies, so you must consider each member state.
And THEN you have the complexities of the reimbursement process afterwards—or now, during the MAA review and approval for oncology products. Topics such as Joint Clinical Assessment and the publication of clinical data should be discussed in detail early in the process, so that clients are aware of the potential cost, resource, and planning implications
Anyone can read guidelines, but it’s never just a matter of reading guidelines, and that’s where Chinese biopharmaceutical companies can get tripped up. Sometimes failed attempts to get advice from an agency is the first hurdle or lack of awareness of processes including the need for GMP and/or GCP inspections.
Global Forum: Thank you for your reminder that regulatory approval doesn’t actually get the product into the hands of the patients it was designed and approved for.
Daphne Smyth: That’s exactly it. That is everybody’s aim: To get the product to the patients, not just to get approval.
Global Forum: This is hard, like threading a moving needle.
Daphne Smyth: Also correct.
Global Forum: And although this is hard, it IS possible. Could you please share one or two success stories that would encourage interested readers?
Daphne Smyth: We have two clients, who have received MA approvals in 2024, 2025, and 2026, that are happy for us to use their names: CStone and Hansoh. The reason we don’t name more is because we haven’t asked, frankly. We have found that Chinese companies are very open to sharing this type of information, especially once it is in the public domain (after MA approval).
They are two of our success stories. Both companies submitted marketing authorization applications to the EMA and to the UK MHRA based largely on Chinese pivotal data, with varying levels of bridging needed, and they have been approved in both the UK by the MHRA and in the EU by the EMA.
In addition, we are working with several more Chinese companies, some that are in early development and some that have completed development. We are advising on routes to market as well as identifying data gaps and mitigation, including as needed designing bridging studies and negotiation with EMA.
Global Forum: In your opinion, how do you think US- and EU-based sponsors will respond to this initiative?
Daphne Smyth: One very interesting thing is that the larger pharmaceutical companies are already investing in Chinese biotech or have already bought assets to further develop and market themselves.
It can be quite challenging to identify which asset came from where. A company buys an asset with a development name or number, then the name changes from Development Company 101 to Acme 103, and it’s no longer transparent where this product comes from.
This is already happening. A lot of Chinese companies already have agreements with some of the larger European and US biotech and pharmaceutical companies.
Global Forum: This isn’t happening in a vacuum. It’s happening in a global ecosystem that sometimes seems to follow one of the laws of physics: If there’s an action here, there will be a reaction somewhere else.
Daphne Smyth: That’s it. And it’s the same as a lot of things: If you’re not aware of it, you don’t see it; but once you become aware of it, you see it everywhere.
Global Forum: What else should people know? Is there a question we didn’t ask that you really must address?
Daphne Smyth: The question that interests me most is: What comes next? Are we going to see a cautious approach, a battening down of the hatches, a tightening of regulatory guidelines to protect local industry? Or is it going to be a genuine expansion in science, to review the best therapies and innovations for our patients?
I honestly hope it’s the latter, but this is the question that we need to think about as an industry, as nations—and as patients.
Global Forum: Are current geopolitics getting in the way of what might happen with this science?
Daphne Smyth: Geopolitics are getting in the way of global development, for sure. It causes uncertainty. There is already so much uncertainty, and the geopolitical situation has added to that, for sure. Still, I find this fascinating. It’s one of the most interesting developments I have been involved in in 35 years in the industry. Apart from the setup of the European Medicines Agency, this is honestly next.