The center of the global pharmaceutical industry is shifting eastward. Lured by China's inexpensive, highly-skilled workforce and booming consumer market, multinational pharmaceutical companies are increasingly exporting their research and development activities to China. Despite burgeoning foreign investment in China's pharmaceutical sector, however, foreign invested companies account for less than thirty percent of sales. In this highly fragmented market, domestic companies dominate. And the Chinese pharmaceutical sector grows at double digit rates, many of these domestic companies are poised to become future leaders in the global industry.