China has a long history of developing and applying Chinese herbal resources. Rich herbal documents profoundly manifest our medical development and people's rich experience in application of Chinese herbal resources. Based on appraisal and conclusion from medical experts of generations, systematic chemical analysis and differentiation of Chinese herbs, as well as pharmacological research have been carried out with application of modern science. It is an essential breakthrough by using modern scientific and technological manufacture methods. Chinese herb pharmaceutics technique has improved so has new Chinese herb industrial mass-scale production formed. Since the founding of new China, 9,000 patent medicines and health preserving products in more than 50 types have been produced, with the development of Chinese herb resources, thus meeting medical and health need at home and abroad.

With the development of China's economic system reformation, local governments and Chinese herb business enterprise at all levels become enthusiastic and concerned with Chinese herb development. In the course of adapting to social market economy development, they gradually set up Chinese herb production working new systems and patterns of herb product base construction, so they are on the way of Chinese herb industrial business, and they have formed a new organizing system of Chinese herb production. In recent years, Chinese herb industrial and commercial enterprises attached more importance to founding sound material bases and resource bases of their own, which closely cooperated with Chinese herb product bases in different places. In this way, they search for development, coordinated requirements of production and demanding, stabilized construction of product bases, and in the end, improved the course of mass-scale and accumulating product of Chinese herbs. For example, they planted ginseng and America ginseng in northeastern provinces, organized national coordination groups which actively regulated manufacture and scales of ginseng and American ginseng, analyzed marketing, researched planting tectonics so as to decrease manufacture blindness and improve producing technique level. In order to market, they formed the Amur Corydalis Manufacture and Coordination Group in Zhejiang and Jiangsu provinces, and timely researched and send information to farmers, and very well guided balanced development of Amur Corydalis Yuan Hu Planting. They constructed Hooet Tseng manufacture coordination organization in Yunnan and Guang xi and played an important role in Hooet Tseng manufacture. Some places have begin to construct herb mass-scale product bases in form of shares, which closely connected bases construction and various economic benefit, and promoted prosperous development of herb production.

In the course of hectic market competition many Chinese herb industrial enterprises attach more importance to quality of herb resources and their own credit, based on the special requirements of their own products. Efforts are concentrated to develop bases that they need for material production, in order to guarantee credit and profit of their major products. For instance, Haerbin No. 2 Chinese Herb factory and Heilongjiang Provincials Herb Company together founded a product base of Skullcap which is a material for Shuang Huang Lian powder and injection. Hubei Jinzhou pharmaceutical Factory, Hubei province Herb Company and Luotian County Herb Company together set up a manufacture base for materials of virgate bushclover. In order to stabilize sales and guarantee product quality, some Chinese herb commercial enterprises actively united themselves to herb producing areas and formed various manufacture and coordination organizations, in this way guaranteed quantity and the quality of supplied products. For example, according to market demand, Heilongjiang Chinese Herb Scales Company set up a manufacture base for producing ginseng with low fertilized level. This met the international market need and gain good credit. Shanghai Herb Company constructed a base for Saffron crocus export, which improved scale of activity of enterprises. Some reigns put forward a new manufacture sale service sys-tem, which used scientific service to connect all farmers and guide herb production. This developed herb production into a new unprecedented prosperous stage.