Pharmaceutical manufacturers are all owned enterprises, under the planned economic system are unified national production. Obviously there is a mismatch between production and sales, the demand for medicine can not be timely. The field of drug circulation is all ownership by the whole people, and the disadvantages of planned economy have a direct impact on the development of medicine. For many years after that, the two National Conference on pharmaceutical products and raw materials. Make the production plan in the meeting, according to the plan to complete the production, according to the plan circulation, according to plan clinical medication.

In the specific historical conditions, some new elements in line with the market economy began to sprout. Because there is a people do not enjoy free medical treatment, the serious lag of the planned economy, people's life so the medicine produced a lot of demand. The pharmaceutical market emerged for far less than the situation, the development of the times and the national policy under the help of a Chinese characteristic form of enterprise -- enterprise of collective ownership to advance in the development of the pharmaceutical industry to inject new strength. Many of the city, county, district governments have opened a pharmaceutical production enterprises, and even many local military system is also involved in. These companies start with the historical background of the time have a great relationship, because in the end the * * * after a large number of educated unemployed after returning home, not a part of the countryside educated youth are unemployed in the state, the emergence of a large number of surplus labor. But in the long term under the planned economic system of the society a thousand things wait to be done to hold so much labor from the preparation etc.. However, these educated parents, partners have the formal establishment of national work. In addition, a large number of staff members of the military system, most of them do not have formal work, some of which are long-term living in rural areas. In order to solve the problems of the children, the partner's work and the life of the two families in many units, this kind of special collective enterprise system has sprung up. State owned enterprises are run by the state and administrative institutions directly to the country, and the opening of new collective enterprises have not planned economy proprietary direct property, staffing naturally not belonging to the state, and institutions directly under the. At this time, the collective enterprise system is such, funded by the start-up unit, the staff generally give priority to the system of relatives, if there is surplus from the community to recruit. Belong to self financing in the business, rather than the state owned enterprises on. In the plant construction, most of them are similar to the manual workshop. The scope of production is mainly concentrated in the investment of small, low technical formulations. Technical personnel are far behind the ownership of enterprises. These collective enterprises at the beginning of the foundation and large state-owned enterprises compared with congenitally deficient, the living environment has been greatly restricted. But perhaps it is because of the crisis has been, these pharmaceutical companies quickly find a way to survive, in the fierce competition in the market, many survived. Because of the great demand of medicine, the sale is not the core problem, however, the purchase of raw materials has become a prominent problem that restricts the development of collective enterprises. Production of raw materials under the control of the enterprise owned by the whole people, the traditional planned economy system has been the main theme, the state-owned large enterprises producing raw materials are a priority in accordance with the planned supply, collective enterprises can only compete for large enterprises plan remaining raw materials co.. In such an environment, the collective enterprises develop their own. Although the final transformation of the collective enterprises and even most of them have now retired from the stage of history, however, this part of the basic form of today's pharmaceutical enterprises basic framework. However, the impact of collective pharmaceutical companies for future generations is far-reaching. Apply the evaluation of state leaders, collective enterprises is a useful complement to the ownership of the whole people.