There are obvious low cost advantages on developing preclinical trials and clinical trials of innovative drugs in China.
The cost of engaging a Ph.D is about 300 thousand dollar per year in USA, while in China the cost is 30 thousand dollar. The total cost of implementing a typical R&D project in China is 20% of the cost in USA.
There are abundant laboratory animals which can be used in preclinical trials, and the prices are inexpensive. The price of a SPF grade rat in China is about 25 Yuan, while the price in USA is 20~30 dollar which is 7 times than the price in China. The costs of big animals are higher.
The costs of clinical trials are also low. Just in the terms of the cost of clinical trials (excepting the cost of drugs), in China for a anticancer drug, the cost spending on a subject is 10,000 Yuan, while in USA the cost is 20,000 dollar which is 17 times than the cost in China.