During 2006-2011,the compound growth rate of pharmaceutical market of the third-class hospitals in China is 22.29%. The market size in 2011 is 2.73 times as large as in 2006. The large and medium-sized third-class hospitals grow more rapidly than the small-sized ones,and the third-class hospitals in Central and Western China grow more rapidly than those in Eastern China. There is fierce competition in the pharmaceutical market of the third-class hospitals. The CR(4) and HHI of pharmaceutical enterprises is respectively 16.97% and 159.47 in 2011. The enterprises supplied the most of drugs to hospitals in 2006 maintain the first position in 2011 account for 24.14%. Foreign invested pharmaceutical enterprises are in an obviously advantageous position in the competition. <<