The modern pharmaceutical industry is characterized by high innovation and margins; it is a powerful geopolitical means of influence. The author analyzes the features of the Chinese pharmaceutical industry, which has shown significant progress in recent years. There are also obstacles to its further development, which are related, in particular, to political factors. The author describes the transformation processes of the modern Chinese pharmaceutical ecosystem. The main focus of accelerated growth is based on domestic consumption and biotech startups: the direction of government and corporations is new drug technologies, search for new therapeutic targets, and development of innovative molecules. A feature of the Chinese pharmaceutical market is the dominance of domestic companies and the predominance of the hospital segment over pharmacy. Generic drugs account for 94,6% of the drug portfolio, but Chinese pharmaceutical manufacturers’ high ambitions to be global players are encouraging active research, and a system of guaranteed early-stage funding from private and public funds contributes to this. The strategic partnership with Chinese manufacturers helps not only to finance research activities, but also entering to a large Chinese market. The cooperation of Ukrainian pharmaceutical manufacturers with Chinese partners is mainly based on importing raw materials (API) to produce medicine. The raw material safety in the conditions of geopolitical cataclysms should become a critical point for Ukrainian pharmaceutical manufacturers. For Chinese partners who have visited Ukrainian enterprises many times before and understand the advantages of Ukraine’s geographical location, its scientific background for joint research, and the prospects of further integration with EU countries, localization in Ukraine could bring additional strategic benefits. The study aims to analyze the transformation processes of the modern pharmaceutical industry in China, its place in global production processes and supply chains, and characterize the prospects for the further strategic development of Chinese biopharmaceuticals in domestic and foreign markets. The study benefits the Ukrainian pharmaceutical manufacturers interested in developing cooperation with Chinese companies, including in joint research activities.