To encourage more overseas customers to try Chinese herbal medicines, an export-oriented pharmaceutical company in north China's Hebei Province has offered to provide them free health insurance, covering health problems arising from taking the herbal medicines.

The Shijiazhuang-based Shineway Pharmaceutical Company is the first Chinese drugmaker promising to provide health insurance for their overseas customers.

Industrial experts believed this method indicated the soaring ambition of Chinese medical companies to enter the global market and the persistent caution of foreigners in accepting Chinese medicines made of herb and plants.

According to the agreement clinched between Shineway and the Property and Casualty Company Limited of the People's Insurance Company of China, the insurance policy mainly covers 10 products including the most well-known Wufu Xinnaoqing Soft Capsule and the Huoxiang Zhengqi Soft Capsule for treatment of angina and cold separately.

Customers in Vietnam, Malaysia, Indonesia, Russia and South Africa are eligible to acquire the insurance, said the agreement.

Refusing to disclose its specific payout, the company said no compensation claims have been received since it started export business in 1996. To raise its visibility and popularity, the company has patented its products in many countries.

Statistics from the Ministry of Commerce revealed that export volume of Chinese herbal medicines has witnessed a steady increase over the past few years. In 2003, the figure reached 712 million US dollars, up 6.11 percent over 2002.

Of the total, some 486 million US dollars were generated from the Asian market, 92.7 million from Europe, 105 million from North America, 10.49 million from Africa, 8.89 million from Oceania and 9.75 million from South America.

To cater to the needs of foreigners, many Chinese medical companies have strengthened their R&D investment to expand product mixes from medicines that can be taken only after being boiled with boiled water or wine to more Westernized ones like soft capsule, injection and granule.