Nothing is impossible with a bit of hard work, and it's never too late to change, but it can be disheartening when your peers outpace you.

Government officials in Wenshan Zhuang and Miao Autonomous Prefecture, in the far southeastern corner of Yunnan Province, are all too familiar with the old adage, "better late than never".

The region started to develop its local economy only in the mid-1990s, more than a dozen of years later than other parts of the province. Its neighbours had a bit of a head start, but it has covered a lot of ground over the past decade.

The region developed rapidly after it adopted a patent strategy to encourage the growth of one of its key industries Sanqi.

Also known as 'Tianqi', Sanqi is a type of ginseng and one of the most favoured natural herbs in traditional Chinese medicine.

The plant is effective for treating blood diseases and tumours, building immunity, and combating fatigue. All parts of the plant can be used, including its roots, stems and flowers.

The plant is indigenous to the mountainous Wenshan area, which is also the main production base for related medicine. With a planting area of over 5,500 hectares, the region accounts for 95 per cent of the country's total Sanqi production.

The local government has carried out a series of measures designed to capitalize on this, such as developing patent technologies, applying for legal protection on products of origin, and registering certification trademarks. It is hoped this will make the Sanqi industry more competitive and drive local economic growth, says Ma Liangjie, deputy director of the prefecture.

Patent applications

Sanqi cultivation and medicinal use goes back over 500 years. It wasn't until modern processing technologies were introduced, however, that the traditional medicine gained wider acceptance.

Due to the rising popularity of this valuable herb, the local government has encouraged enterprises to emphasize technological innovation and apply for patents.

"We offer information services, sponsor applications, provide capital support to technological projects and help train new talent. This encourages patent applications," says Zhou Shihong, director of the local Intellectual Property Office.

The achievements have been stunning. Between 1996 and 2004, the 25 Sanqi processing companies operating in Wenshan applied for 115 patents, accounting for 58.37 per cent of the total number of patents applied for in the prefecture. Of those 115 applications, 86 were for invention patents, Zhou says.

Thirteen new patented Sanqi medicines and health care products have been put into production since 1996. These products have recorded sales of 6.15 billion yuan (US$760 million) over the past nine years, and have brought 79 million yuan (US$9.7 million) in taxes and profit to the local economy.

The patent strategy has benefited Wenshan economically, and has also helped to create a better market environment, says Zhou. Local enterprises develop different products with their own technologies, helping them sidestep heated price wars with similar brands.

Property protection

The huge number of fake products on the market was affecting the development of Wenshan's Sanqi industry. Something clearly needed to be done.

The local government realized in 2000 that legal intellectual property (IP) protection was the best way to strengthen local competitiveness. IP initiatives could also open the door to bigger markets, both at home and abroad.

The government started applying for protection of products of origin. It drafted a series of documents outlining the history of Wenshan Sanqi, and provided detailed information on geographic planting areas, processing requirements, and the relationship between product quality and environment.

The General Administration of Quality Supervision, Inspection and Quarantine approved the application in November 2002. Wenshan Sanqi became the 29th product to be placed under origin protection in China, and it was the first traditional herb to classified as such.

Earlier last year, the State Administration for Industry and Commerce approved the local government's registration application to establish Wenshan Sanqi as a certification trademark. It was the first certification trademark in Yunnan Province to use geographic specifications, says Ma Liangjie, the deputy director.

"The origin protection measures and the certification mark established Wenshan Sanqi as an exclusive product in the domestic and world markets. Our industry will be better protected," he says.

The director expects the industry to rapidly develop under the new legal measures. Over the past five years, the Sanqi industry in Wenshan grew by an average of over 30 per cent annually.

The prefecture has yielded 2.41 million kilograms of Sanqi, with total sales hitting 1.12 billion yuan (US$138 million) in 2004.

(China Daily 01/16/2006 page9)