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Traditional Chinese Medicines (TCM) are scientific and technological resources with advantages and huge innovation potentials, said Wang Guoqiang, director of the State Administration of TCM and vice-minister of the China's National Health and Family Planning Commission, on Friday during the annual two sessions.

He said TCM innovation faces several challenges, such as heavy dependence on scientific research institutions as well as lack of funding and multiple subjects.

The funding in R&D sections of TCM companies only occupies one or two percent of the whole revenue during 12th Five-Year Plan(2011-15), Wang said.

He offers three suggestions:

First, the innovation research on TCM is required to be part of the national scientific and technological strategy.

Second, the management of TCM technology has to be reformed and improved to encourage and assess the development of the TCM research.

Third, China also needs to put greater effort in training the talents and exploiting the TCM potential for innovation.