The year 2010 to 2011 was an eventful one for people who used to like to use Chinese herbs to cure their diseases. The price of Chinese herbs, which had been relatively stable in the past, experienced several price spikes in just less than two years, and suddenly became the “expensive medicine” and the “medicine for your life” that the people were discouraged from using overnight. The “medicine for your life”. But the situation is not only that, Chinese herbal medicine is now experiencing a more severe fourth round of price increases peak. Since 2010, the national Chinese herbal market has experienced three crazy price increases, 537 kinds of Chinese herbal medicines 84% are in the price increase, up more than 100% of the varieties of up to 96, the average rate of increase reached 109%, and the highest rate of increase even reached 400%. Party ginseng per kilogram from 28 yuan to 70 yuan, maitake per kilogram from 80 yuan to 180 yuan, prunus ginseng from less than 200 yuan now up to 560 yuan, and the price is still climbing …… According to industry analysis, the momentum of Chinese herbal medicine prices will continue to rise this year, and there will be no recent trend of price reductions, which Wild Chinese herbs because the amount of resources continue to reduce and near depletion, its rise is more ferocious and terrible, the situation is very unpromising. If this continues, not only will the production costs of Chinese medicine enterprises increase to varying degrees, but the healthy and sustainable development of China’s Chinese medicine industry will also face a very serious challenge. What kind of changes are taking place in the Chinese herbal medicine market, and what exactly are the reasons for such a crazy price increase in Chinese herbal medicine? The reason for this is that the Chinese herbal medicine market has been in the doldrums for about 10 years. Starting from 2001, the future of the Chinese medicine industry was uncertain because the market demand was not high at that time due to various reasons. The SARS outbreak in 2003 led to a brief period of relatively high prices for Chinese herbal medicines, but it was only a short-lived event. In addition, with the development of society, the urban migration of rural laborers has led to a gradual decrease in production resources, which in turn has led to a weakening of the foundation of rural herbal production, and the enthusiasm of herbalists to grow herbs has gradually decreased due to the low prices, resulting in the once shocking phenomenon of “herbal exports being sold as grass”. On the other hand, because of the unregulated policies and regulations, years of uncontrolled mining is also leading to the depletion of wild herbal resources. For example, heavy floor is a perennial plant, the rhizome needs to grow for many years to expand, the medicinal content and ingredients to improve, but after uncontrolled mining, heavy floor can not continue to reproduce, the current domestic production is only three or four hundred tons of the southwest area. Thus, for its main production of raw materials for the enterprise, once the supply will be cut off will be fatally affected. Due to the improvement of production technology, the application of Chinese herbal medicine is becoming more and more extensive, and the contradiction between supply and demand has become more and more prominent. For example, honeysuckle is used in food, beer, herbal tea, juice, toothpaste and cosmetics, in addition to medicine, so it is often snapped up by manufacturers, resulting in shortage of supply. And once the situation of oversupply, its bound to attract a lot of lobbyists malicious hoarding speculation, which in turn formed another force that boosted the crazy growth of Chinese herbs. But now this unusually severe situation is another rare opportunity, we can take advantage of the situation to rationalize the production and marketing mechanism of herbs, through the members of the pharmaceutical enterprises to form a strategic partnership, we work together to solve the shortage of herbal resources. In the second half of this year, the national authorities will introduce a series of policies to regulate the Chinese medicine industry in response to this special situation. At the same time, the “12th Five-Year Plan” of the Chinese medicine industry has also gradually surfaced… … In today’s world where people are more and more fond of Chinese medicine to prevent and treat diseases, Chinese herbal medicine is facing shortage and price increase, so it should be open source and cut costs, and the state should give policy support to ensure the sustainable development of Chinese medicine.