NANCHANG - Traditional Chinese medicine (TCM) producers welcomed industry support policies unveiled at an executive meeting of the State Council, China's cabinet, on Sunday.

Pharmaceutical executives said the policies will bring development opportunities and hoped that local authorities will roll out more tangible measures.

More traditional medicines will be added to the national list of essential drugs, said a statement issued after the executive meeting presided over by Premier Li Keqiang.

More resources and policies will support the development of traditional medicine, the statement said, including conservation of ancient medical texts.

The pharmaceutical industry is encouraged to use modern technology in researching traditional medicine, while hospitals and researchers are encouraged to try traditional therapies in treating complex chronic diseases.

The policies gave a strong boost to pharmaceutical companies in terms of new medicine development, said Zhu Zhaoyun, R&D director at Yunnan Baiyao Group Co.

The pharmaceutical firms are boosting innovation to meet consumer demand in an increasingly competitive market.

Zhong Hongguang, chairman of Jiangzhong Group, said the company is developing new health care products and boosting research to develop better treatment for common diseases.

The TCM industry, however, faces development challenges, industry insiders warned.

Xu Daofu, director of the general office at Jiangxi provincial TCM hospital, acknowledged that the industry lacks high-level talent. TCM treatment demands a lot of knowledge and clinical experience, he added.

In the coming years, local authorities should carry out more tangible measures to support the industry, Xu said.

Liu Hongyu, Party chief of the Jiangxi University of Traditional Chinese Medicine, said more work needs to be done to help explore effective treatments from ancient TCM records.

Tu Youyou's Nobel Prize win for the discovery of artemisinin, a TCM-based drug widely used to fight malaria, has served as a boon to the industry, said Zhu.

"TCM is a great treasure house. Combined with modern technology, it could benefit more people," Zhu said.