China's role in the global ecosystem for innovation is increasingly being recognized. Now, ten years ago when people asked if there is innovation in China, we say that we'll have to wait and see if anything comes out of the entire process. And increasingly, we're seeing demonstrations of that. It seems that every month there are significant announcements of a global license from China or now increasingly acquisition of Chinese biotechs by global big pharmas, demonstrating that there are interest in seeking innovation in China, particularly in the ADCs. So this is now transitioning from a story of in licensing to China, but a out licensing from China, seeking assets from China for global development commercialization.
We see all the big pharmas have announced deals, whether that's AstraZeneca, Pfizer, Nordisk, BioNTech, and the others.
China has been increasing its investments in R and D. That's coming from the government supported funding, similar to the NIH in the US. It's also coming from the private companies, as well as from venture capitalists and private equity investors. The R and D spending has reached close to twenty billion dollars a year and continues to increase mid teens to high teens each year. The new clinical trials, so clinical trials for innovative products in China, the starts are now at about thirteen hundred a year. That is a sizeable number by any comparison.
While many do consider China a fast follower, right, the speed of following is so fast that it could actually move to first in class.
Right at the tip top, perhaps the innovation is not nearly as numerous as that in the US, another large market for innovation. But it is definitely up there in terms of the potential. And so it behooves company interested in innovation to come and scout in the China market.
So what are the benefits of that? Besides increasing and adding an additional source of innovation that perhaps is yet undiscovered compared to the highly competitive US and European landscape. If you do choose to find an asset in China and work with them for global development, you have a better chance of getting the US and European rights, which a US or European company is less likely to give up, thus allowing you access to bigger parts of the global commercialization than otherwise you could have. These are just some of the benefits, and we do invite companies interested to come and explore.
