According to the Ministry of Labor and Social Security’s (MOLSS) latest statistics on the supply and demand of labor in the second quarter of 2006, China continues to suffer a shortage of middle and senior technical personnel, among which senior engineers and senior technicians are in the highest demand. On average, every senior engineer faces 2.08 positions and every senior technician 1.96. What factors contribute to this ongoing shortage of technical skills in a country known as a global manufacturing hub?

Tongrentang has been one of the most renowned names representing the Chinese pharmaceutical sector since its establishment in 1669. With rich history deep-rooted in Chinese daily life, the firm, however, cannot deny the grave challenges it faces behind all the glamour. Beijing Tongrentang Holdings Limited announced this week a 4.1% year-on-year fall in its third-quarter sales income to 512 million yuan (64 million US dollars) and a 47.81% year-on-year fall in its net profit to 38.41 million yuan (4.8 million US dollars). What is driving the age-old drug giant to such poor financial performance?